Yes, a 600 credit score buys a house in Florida, most often with an FHA loan and 3.5% down. At 600 the score itself rarely decides the approval. Income and monthly debts usually do, and that's where a co-signer comes in.
Where 600 sits on FHA's scale
FHA, the government-insured loan most first-time buyers use, gives full financing with 3.5% down at 580 and up, so 600 clears the line with 20 points to spare. FHA also doesn't charge more for mortgage insurance at a lower score. The 1.75% upfront premium and the 0.55% annual premium on a 3.5% down loan are the same at 600 as at 800. With an automated approval from FHA's TOTAL Mortgage Scorecard, your debt-to-income ratio (monthly payments divided by gross monthly income) can reach 46.9% for the house payment alone and 56.9% for all debts combined.
The score does show up in lender pricing. Many wholesale lenders price FHA loans a little higher below 620 or 640, either as a slightly higher rate or as discount points, an upfront fee measured as a percent of the loan. On a $319,113.44 loan, every 0.25% of pricing is $797.78. FHA lets the seller pay up to 6% of the price toward your costs, and that credit can pay discount points, so a pricing adjustment can go on the seller's side of the closing statement. Because we shop several wholesale lenders, we look for the one whose price sheet treats a 600 score best.
A worked example with a co-signer
A buyer with a 600 score earns $4,000 a month and pays $300 on a car and $100 in card minimums. The home is a $325,000 single-family home in Lee County at a 5.75% rate on a 30-year fixed, with taxes at 0.90% of the price and insurance at $260 a month.
| Payment piece | Amount |
|---|---|
| Down payment (3.5%) | $11,375 |
| Base loan | $313,625 |
| Total loan with 1.75% upfront MIP | $319,113.44 |
| Principal and interest | $1,862.26 |
| Monthly MIP (0.55% a year) | $143.74 |
| Property taxes | $243.75 |
| Homeowners insurance | $260.00 |
| Total payment | $2,509.75 |
On $4,000 a month, that payment is 62.7% of income, well above 46.9%. Alone, this buyer's house payment tops out at $1,876, which is 46.9% of $4,000 and buys about $233,000 with the same taxes and insurance.
Now add the buyer's mother as a co-signer. She's retired, receives $1,900 a month in Social Security that isn't taxed, and has no debts. FHA lets the lender gross up non-taxable income by 15%, so her $1,900 counts as $2,185, and household income for the loan becomes $6,185.
- Housing ratio: $2,509.75 divided by $6,185 is 40.6%, inside 46.9%.
- Total ratio: $2,509.75 plus $400 is $2,909.75, and that divided by $6,185 is 47.0%, inside 56.9%.
The $325,000 home now qualifies. On FHA she's a non-occupant co-borrower: she signs the loan and her income and debts count, but she doesn't go on the title and doesn't have to live there. Her score matters too. FHA uses the lowest middle score among all borrowers, so hers needs to be 580 or higher to keep the 3.5% down payment.
Program by program at 600
- FHA: Approved with 3.5% down, or with FHA 100% financing, where a down payment assistance second mortgage covers the 3.5%.
- VA: VA sets no minimum score of its own, and AAA Capital Funding does VA loans from a 500 score. Eligible veterans put $0 down and pay no monthly mortgage insurance.
- USDA: No USDA minimum, though most lenders want about 640 for USDA's automated approval.
- Conventional: Opens at 620, so a 600 buyer is 20 points away.
Moving a 600 score up, and when it pays
Twenty points can move a buyer from FHA alone to a choice between FHA and Conventional. The fastest lever is card utilization, the share of each card's limit you're using. Paying a $2,700 balance on a $3,000 card down to $800 takes it from 90% to under 27%, and a rapid rescore can post the new balance in days. Hold off on new cards and car loans while you shop, and keep old cards open, since closing one shrinks your available credit.
At 600 to 640, FHA often beats Conventional on the monthly payment anyway, because FHA mortgage insurance stays flat as the score falls while Conventional PMI climbs. The 620 page shows that comparison on a real price. When income is the gap, a co-signer is usually the quickest fix, and the co-signer guide covers who can sign.
The co-signer calculator shows your price alone and with a co-signer's income added. Call AAA Capital Funding at 888-601-8344 when you want it run for real; we'll price the loan both ways across our wholesale lenders.