616 Credit Score Mortgage

Options for getting a mortgage loan with 616 Credit score

With 616 credit score, you have several options for a mortgage. Purchase or refinance through FHA or financing by private money lenders, aka hard money lenders. To obtain a HUD FHA loan, you must have at least 3.5% down and compensating factors such as low DTI (Debt to Income ratio), stable income, and reserves.

FHA, Fannie-Freddie, VA, USDA, and Non-QM (Subprime)

At a low credit score of 616 You should try to increase your credit to 625, which will open the door for Conventional (Fannie- Freddie) loans, Va, or USDA. Your best bet is an FHA loan, explore https://www.hud.gov/program_offices/housing, and you may qualify for a Non-QM loan. Subprime lenders offer Non-Qm loan programs that allow you to qualify without showing tax returns may consider arranging a loan if the LTV is under 70%. Enter your data here into our FHA/Subprime loan eligibility calculator to explore all your options.


616 credit score mortgage

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Private money lenders for credit score 616

Despite having a low credit score, Private investors will refinance your mortgage as long as you have enough equity in the property or you put in a large down payment.

Owner-Occupied Residential FHA Owner-Occupied Residential Hard Money Non-Owner-Occupied Residential Commercial Vacant Land
Max Loan to Value 90.00% 64.83$ 64.93$ 65.63% 52.12%
Programs FHA Hard Money Hard Money Hard Money Hard Money
Vesting Natural name Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC Natural, Corporation, LLC
Tax Returns 2 years tax- Must documents showing ATR Alt documents or equity-only loans Alt documents or equity-only loans Alt documents or equity-only loans
Points 1.58 2.45 3.18 2.93 3.24
Rate 6.62% 10.68% 11.57% 11.08% 12.77%
Loan terms 30 years or 15 years 1—5 years 1—5 years 1-7 years 1-3 years
Property Condition Good condition Any Any include Fixer-Upper Any Unentitled land reduce LTV to 29.23

The Rates & Terms depend on the Loan-to-Value, credit, property location, condition, and local real estate market condition. Unlike the FHA loan, which has standard underwriting, private money loan programs differ significantly between lenders. It behooves you to contact and get quotes from at least three lenders before you make a decision. See a list of potential hard money lenders or use the Lendersa form to shop for your loan simultaneously with hundreds of private money lenders.

How mortgage brokers rip you off

616 is a low score; unfortunately, a small percentage of mortgage brokers could take advantage of your credit disadvantage by trying to charge you an arm and a leg. Therefore, it would be best if you compared 3-10 lenders' programs before deciding on the best lender, thus avoiding mortgage brokers' rip-offs and loan sharks.

Improve your credit score for better mortgage!

You are close to 625 crdit score with the opprutnity to or above will open the door for more loan programs and better rates & terms. If you are not rushing to refinance or purchase a property, consider raising your credit score before attempting a loan review. Check our recommended resources to improve your credit at the bottom of the page Improving your credit score will enhance your chances for better loans. Understanding how credit scores work is the first step to raising your credit.

Here are a few links to resources that could raise your credit score: https://www.usa.gov/credit-reports https://www.fanniemae.com/crediteducation https://myhome.freddiemac.com/refinancing


List of lenders who consider lending to borrowers with 616 credit:

  • RiteFit LLC
  • 400 N. Tustin Ave, Santa Ana, CA, 92705
  • Our mission is to serve our customers with honesty, integrity and competence. Our goal is to provide home loans to our clients while providing them with the lowest interest rates and closing costs possible. Furthermore, we pledge to help borrowers overcome roadblocks that can arise while securing a loan.
  • Continental Mortgage, Inc.
  • 1086 South Main Street, Suite 102A, Saint George, UT, 84770
  • With more than 50 years combined experience, advanced technology and automated underwriting, Continental has the knowledge and expertise to help you acheive your dream of home ownership. The staff at Continental Mortgage Inc. is dedicated to help finance your real estate needs! By giving our customers the service and performance everyone deserves.
  • Express Capital Financing
  • 2625 East 14 St. Suite 209, Brooklyn, NY, 11235
  • Express Capital Financing was founded by Father and Son, Martin and David Chera. With the knowledge and experience of Martin’s thirty plus years in the business industry, and David’s youthful ambition, this power duo was able to grow their company extensively in a short amount of time.
  • Ichor Financial
  • 3156 Foothill Boulevard, Suite I, La Crescenta, CA, 91214
  • Ichor Financial was created with one goal in mind, saving clients money by providing the lowest rates in the industry. Time and again our rates have beaten not only the major banks but online lenders as well. We actually encourage our clients to shop and compare our rates, something you won't hear from other lenders.
  • Service One Mortgage
  • 23161 Lake Center Drive, Suite 205, Lake Forest, CA, 92630
  • Service One Mortgage is a Full Service Mortgage Advisory Firm, specializing in Residential and Commercial Loans.we have helped thousands purchase and refinance their homes and investment properties.Our motto has always been to offer the lowest mortgage rates while providing the highest level of customer service to each and every one of our clients.
  • Lone Star National Bank
  • 520 E. Nolana Avenue, McAllen, TX, 78504
  • Lone Star National Bank is a full-service independent community bank with many locations across South Texas, founded on January 23, 1983. Lone Star National Bank is a technologically advanced, full-service, independent, community bank with over 700 employees and many locations across South Texas.
  • Honor Mortgage, LLC
  • 144 East Eugie Avenue, Phoenix, AZ, 85022
  • "Honor Mortgage helps you determine the most appropriate type of mortgage for you and your future. While our family-owned-and-operated business may be small, our collection of knowledge, products and resources is not. We offer a wide variety of loan programs to fit you and your families individual needs. Honor Mortgage is a full-service"
  • EFCU Financial Federal Credit Union
  • 10719 Airline Highway, Baton Rouge, LA, 70816
  • EFCU Financial is a Louisiana-based, full-service credit union committed to improving the lives of our members through comprehensive financial solutions delivered with world-class service. Since 1934, EFCU Financial has been passionately living our promise to do what is in the best interest of our members and our community.