You can certainly get a mortgage loan for a FICO® Score of 600 as it falls under the fair credit score range. Several mortgage loans, especially those backed by the government, are meant for people with fair credit scores. How much you can get approved depends on other factors apart from your credit score such as your debt-to-income ratio, employment status, cash reserves, and other financial commitments.
With a 600 credit score, you can get the following loans:
FHA: Insured by the Federal Housing Administration, the minimum credit score you need to qualify for this loan is 580. Apart from your credit score, the FHA loan requires you to put down 3.5% of the purchase price as a down payment. You will also need to pay an upfront mortgage insurance premium (UFMIP) unless you make a down payment of at least 10% or have a credit score of at least 720.
VA: A United States Department of Veterans Affairs home loan is only for people in service, veterans, and surviving spouses. VA loan does not specify a minimum score, but each lender sets its own standard. There is no down payment or mortgage insurance required for this loan, but you may need to pay a funding fee between 1.4% and 3.6% of the loan amount.
USDA: You qualify for a United States Department of Agriculture loan with a 600 FICO Score. This is applicable only for properties bought in eligible rural areas. You will be required to pay mortgage insurance as an upfront guarantee fee and an annual fee.
In short, you are eligible for a home loan with a credit score as low as 600, but you will need cash reserves to pay for other costs such as a down payment or mortgage insurance.
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