Key takeaway600 is still below Fannie/Freddie’s 620 floor, conventional remains effectively unavailable.
What concretely changes at 600
- 600 is still below Fannie/Freddie’s 620 floor, conventional remains effectively unavailable.
- What 600 buys you is momentum: you are one push from 620, where the entire conventional market opens.
- LLPAs (loan-level price adjustments) at 620–639 are the steepest tier, expect meaningfully worse pricing than 640+, even once you cross.
- FHA remains the right vehicle at 600; the strategy question is timing the conventional crossover.
Requirements at this band
| Agency minimum | 620 |
|---|---|
| At 600 | Conventional effectively unavailable |
| Next tier | 620–639: available but steepest LLPA pricing |
| Bridge option | FHA now, refinance to conventional at 620–640+ |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
Smart moves at 600
- Price the FHA loan with an eye toward a 12–24 month conventional refinance.
- Ask your loan officer for a rapid rescore plan targeting 620.
- Avoid new credit; a single new account can erase months of progress near a threshold.
FAQ
What are LLPAs?
Loan-level price adjustments: Fannie/Freddie add-ons to rate or fees based on score, LTV, and property type. They are steepest at the lowest eligible bands, which is why 620 approvals still price worse than 680.
Can I get conventional at 600 with 20% down?
Even with 20% down, agency guidelines draw the line at 620. Portfolio lenders occasionally flex, but terms are non-agency.
Is it worth waiting for 620?
Run both: FHA today vs. waiting. If prices are rising in your market, buying FHA now often wins.