How to Get Approved for a $150K+ Mortgage with a 620+ Credit Score
Learn the exact steps to secure a $150,000+ home loan when your credit score is in the 620+ range. From credit profile preparation, down payment strategy, to debt‑to‑income ratio tips—pre‑plan for buying within 6 months.
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Think a 620 credit score puts homeownership out of reach? Think again. If your score is in the 620–660 range, you're not alone — and you're not out of options.
In fact, many lenders will work with buyers in this range, especially if you're targeting a $150,000+ property, have no recent bankruptcies, and no interest in manufactured homes. With the right strategy and 6 months of preparation, mortgage approval is absolutely possible.
This guide walks you through what lenders are looking for and how to get approved step‑by‑step.
What Lenders Look at When You Apply for a $150K+ Mortgage
Credit Score: Is 620+ Enough?
Yes — many conventional mortgage lenders accept applicants with a minimum credit score of 620. However, approval isn't automatic. At this level, lenders pay close attention to other parts of your financial profile.
💡 Pro Tip: While 620 is the floor, moving into the 640–660 range can give you better loan terms and interest rates.
Down Payment Expectations
For a $150,000+ home, a down payment of:
- 3% ($4,500) is typically the minimum for a conventional loan with strong compensating factors
- 5–20% improves approval odds, reduces PMI, and can lower your monthly payments
Even modest savings can significantly improve your chances. Get pre-approved to see exactly what you qualify for.
Debt-to-Income Ratio (DTI)
Most lenders want your total monthly debts to be no more than 43–49% of your gross income.
- ✅Lower DTI = higher approval chances
- ✅Include all debts: car payments, credit cards, student loans, etc.
Your Credit History Beyond the Score
- •No recent bankruptcies? That's a huge plus when comparing lenders
- •Steady payments over the past 12–24 months build trust
- •Lenders will avoid mobile or manufactured homes for conventional loans — stick to single-family or approved condos
Home Type and Condition
Lenders favor properties that:
- •Are site-built (not manufactured or mobile)
- •Are in livable condition and pass standard appraisals
- •Match your loan amount — so your $150K+ target is realistic and fits well into conventional loan categories
Compare Lenders Who Work with 620+ Credit Scores
Not all lenders have the same requirements. Find one that fits your profile and get the best rates available.
Compare Lenders Now →How to Position Your Profile with a 620–660+ Credit Score
1. Review Your Credit Report for Errors
Get reports from all three bureaus (Equifax, Experian, TransUnion). Dispute inaccuracies now — it can take weeks to resolve.
2. Lower Your Credit Utilization
- •Pay down revolving balances
- •Keep usage under 30% of your available credit
- •Avoid maxing out cards, even temporarily
3. Avoid New Accounts or Closing Old Ones
New credit lowers your average account age and creates unnecessary hard inquiries. Stay steady and focus on getting pre-approved instead.
4. Save for a Down Payment and Closing Costs
Start building your savings—even small amounts count. Aim for:
- •$4,500–$15,000+ depending on loan type and how strong your file is
- •Consider gift funds from family, if allowed
5. Keep DTI in Check
Pay off small debts and avoid new obligations. Hold off on financing a car, furniture, or taking new loans.
6. Secure Stable, Documentable Income
- •W-2 employees: recent pay stubs + 2 years tax returns
- •Self-employed: 2 years of returns, P&L statements
- •Avoid job changes within the 6-month window
7. Choose the Right Property Type
- •Single-family homes, townhomes, and approved condos are best
- •Avoid manufactured or mobile homes — these often require alternative financing and have stricter guidelines
Your 6-Month Action Plan to Mortgage Approval
Month 1: Clean Up Your Credit
- • Request full credit reports
- • Dispute errors
- • Set up automatic payments to avoid missed bills
Month 2: Start Saving
- • Build your down payment and reserve funds
- • Cut back on discretionary expenses
Month 3: Pre-Qualify with a Lender
- • Ask what down payment, DTI, and credit profile they require for a $150K+ purchase
- • Request a soft-check pre-qualification
Month 4: Stay the Course
- • Don't open new credit
- • Keep balances low
- • Document all sources of income
Month 5: Narrow Property Search
- • Look for eligible homes within budget
- • Make sure the homes qualify for conventional financing
Month 6: Get Pre-Approved & Be Ready to Act
- • Submit all paperwork for a formal pre-approval
- • Shop with confidence knowing your financing is nearly secured
Frequently Asked Questions
Can I buy a house with a 620 credit score?
Yes, many lenders will approve mortgages for buyers with a 620+ score—especially with a solid down payment and no recent negative credit events. You may need to compare multiple lenders to find the best terms for your situation.
How much do I need to put down for a $150K home?
You could qualify with as little as 3% down ($4,500), though putting down 5% or more gives you better approval odds and can reduce your monthly PMI costs.
Is it harder to get approved without a perfect score?
Not if you prep properly. A 620–660 score isn't a dealbreaker, but lenders will look closely at your DTI, job stability, and property type. Strong compensating factors can offset a lower credit score.
Do mobile homes or recent bankruptcies affect approval?
Yes. Most conventional loans exclude mobile/manufactured homes, and recent bankruptcies (within 2–4 years) usually require waiting periods or special loan programs.
Conclusion
A 620+ credit score doesn't mean you're locked out of homeownership. With the right approach, a $150,000+ home is within reach—especially if you act now, avoid financial missteps, and prepare strategically.
- ✅Know your numbers
- ✅Start saving
- ✅Talk to a lender
- ✅Target the right home
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