If you’re ready to buy a house, you need to figure out the loan process. An FHA loan that’s backed by the Federal Housing Administration is an excellent option if you’re in the market for a new home.

One big question that comes up time after time is, “How does my credit score affect my rate?
Best FHA Loan Rates 600 to 630 Credit Score

If you’ve tried to find rates for your credit score that’s 630 or less, you’ve probably hit a brick wall.

Why don’t lenders just give it to you straight?

I’m glad you asked!

Because here at the Wendy Thompson Lending Team, we help you get the best rate. And we don’t beat around the bush about it, either.

If your credit score is 600, 605, 610, 620, 625, or 630, this article is for you. Keep reading to get real-life sample rates and payments based on your credit score.

First, we recommend you get started with a free, quick quote by state:

Best FHA Loan For Rates 600 to 609 Credit Score

Some lenders make you jump through hoops when your credit score is on the low end of the 600s. While you might not have as many options in this range, it doesn’t mean you won’t be approved.

In fact, FHA loans are designed for people just like you. 

Here’s what you might expect your rate to be:

sample FHA loan Rates by Credit score: 600 to 609 

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

4.125 %

$1,611.00

600 - 619

4.875 %

$1,718.00

*Updated 2/15/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Keep in mind that rates constantly change so it is best to use our rate checker below for an accurate rate.

To help you get approved, lenders look at other financial indicators like your debt-to-income (DTI) ratio.

DTI measures how much money you have in your pocket after you pay all of your bills – like your monthly mortgage and other debt payments.

Lenders like to see a DTI of 50% or less, so aim for at least that.

Best FHA Loan For Rates 610 to 619 credit score

The APR, or annual percentage rate, that you get with an FHA loan depends a lot on your credit score. The APR is how much you’ll pay the lender to borrow money to purchase a house.

Several factors go into your credit score. A few simple actions can boost your score and help you qualify for a better rate.

We’ll cover tips to improve your credit score in a minute.

Let’s take another look at those sample rates.

sample FHA loan Rates by Credit score: 610 to 619 

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

4.125 %

$1,611.00

600 - 619

4.875 %

$1,718.00

*Updated 2/15/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

A higher credit score usually means you get a lower APR, and that can lead to huge savings on your home loan.

Best FHA Loan For Rates 620 to 629 Credit Score

As you can see from the rate table, your APR doesn’t improve much with a credit score of 620 to 629 compared to 600. 

But it is an improvement! And a tiny difference can mean big results for your FHA loan.

If your credit score is 610, your rate might be 4.875%. At 620, your rate could drop to 4.125%. That slight drop of 0.75% can save you over $40,000 in interest payments on a $250,000 home.

And that’s a huge chunk of change.

sample FHA loan Rates by Credit score: 620 to 629

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

4.125 %

$1,611.00

600 - 619

4.875 %

$1,718.00

*Updated 2/15/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Best FHA Loan Rates For 630 To 639 Credit Score

One of the biggest advantages of an FHA loan is the low down payment. You might qualify for a loan with only 3.5% down.

That means, on a $250,000 home, you wouldn’t even have to save up $10,000 for your down payment!

SAMPLE FHA LOAN RATES BY CREDIT SCORE: 630 TO 639

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

4.125 %

$1,611.00

600 - 619

4.875 %

$1,718.00

*Updated 2/15/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

With your credit score sitting so close to 640, it might not take much to get you over the hump. The main factors influencing your credit score are:

  • - Late payments
  • - A previous foreclosure
  • - Not having enough credit history
  • - A Chapter 7 or Chapter 13 bankruptcy
  • - Having accounts in collections

Take a look at your credit report to see how you can improve your finances going forward.

5 Easy Ways To Improve Your Credit Score

If your credit score is 600, 605, 610, 615, 620, 625, 630 or 635, you can improve your credit score with a few simple strategies.

The first thing you need to do is pull your credit report. You can download a free copy of your credit report from all three credit reporting agencies at AnnualCreditReport.com.

Once you have your credit report in-hand, here’s what you do:

  • - Dispute any inaccurate information (Spoiler alert: It’s easier than you think!)
  • - Payoff delinquent accounts as quickly as you can
  • - Make your payments on time, every time, to boost your credit score
  • - Pay down high balances to improve your DTI ratio
  • - Don’t sign up for any new debt

Want help to increase your credit score?

The Wendy Thompson Lending Team can do an in-depth assessment and tell you exactly how to improve it!

Are You Ready To Buy A House?

Most people can improve their credit scores by implementing the tips above. If you want help with your credit score, consider hiring a professional credit repair company.

No matter what, make sure you’re open about your financial situation with the Wendy Thompson Lending Team. 

Don’t waste time on shady lenders who won’t tell you what rates to expect up front. Contact the Wendy Thompson Lending Team to find out how easy getting a home loan can be!

We know how much buying a house can mean to someone, and we want to help you buy a home!

Pick the Wendy Thompson Lending Team – call us today!

Unique only to the Wendy Thompson Lending Team is our:
The Tactical FHA Loan Blueprint


Deciding on the right FHA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage.  

Don’t make that mistake, contact the Wendy Thompson Lending Team today!  

You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for a Home Loan'  or call Wendy’s Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams!