I help buyers with lower scores or a rough credit history get a mortgage on Long Island and across downstate New York.
Credit challenges, such as a low credit score, late payments, collections, high card balances or a past bankruptcy or foreclosure, don’t automatically rule out a mortgage. They shape which programs you can use, how soon you can apply and what a loan may cost. The first step is the same for everyone: get your free credit reports and make sure they’re accurate.
- You can check your report from each nationwide credit bureau for free every week at AnnualCreditReport.com.
- FHA and Fannie Mae set waiting periods after a bankruptcy, foreclosure or short sale. Meeting one is a starting point, not an approval.
- The FTC says no one can legally remove accurate, current negative information, so treat any such promise as a red flag.
- A 600 score can work with FHA, and sometimes with VA or conventional loans, but lenders set their own minimums too.
How credit history affects a mortgage
Lenders read your credit alongside your income, savings, debts and the property, and it can affect both whether you qualify and the pricing you’re offered. Common issues:
- A lower score. Credit score requirements differ by program and lender, so a score that falls short for one loan may work for another.
- Late payments. Recent ones can draw questions, so be ready to explain them.
- Collections and charge-offs. Treatment varies by program and lender, so ask before you pay or settle an old account.
- High card balances. The FTC says low card balances help your credit, and FHA, for example, counts the monthly payment shown on your credit report among your debts.
- Bankruptcy, foreclosure or a short sale. These start waiting periods. The FTC notes most negative information stays on a report for seven years, and a bankruptcy for 10.
If a lender evaluates your credit and tells you that you don’t qualify, even for a preapproval, the CFPB says it must give you an adverse action notice. Bring it when we talk.
Start with your free credit reports
According to the FTC, Equifax, Experian and TransUnion let you check your report from each of them once a week for free at AnnualCreditReport.com, the only website authorized to fill orders for the free reports you’re entitled to by law. You can also order by phone at 1-877-322-8228.
Pull all three, since they may not match, and look for unfamiliar accounts, late payments you believe you made on time, outdated balances and debts listed twice.
How to dispute an error
The FTC says disputing mistakes is free. The CFPB’s process:
- Write to each credit bureau that shows the error. Explain in writing what is wrong and why, with copies (not originals) of supporting documents. You can send it by certified mail and ask for a return receipt.
- The bureau investigates. It must forward your dispute to the company that supplied the information (the furnisher) and report the results back to you.
- Dispute with the furnisher, too. It generally must investigate and respond within 30 days.
- Follow up. Wrong or unverifiable information must be updated or removed and all the bureaus notified. If the item stays, you can ask the bureaus to add a statement of dispute.
Loan programs for a 600 credit score
Programs read credit differently, so I compare them side by side (see my overview of Long Island mortgage loan programs):
- FHA. HUD notes that FHA’s credit score minimums sit below those of most conventional mortgages. With a 580 or higher, HUD allows FHA’s maximum financing, though some lenders set a higher floor. See how FHA loans work on Long Island.
- VA. If you are an eligible veteran, service member or surviving spouse, VA has its own credit guidelines, and VA.gov notes the lender still has to approve the loan. VA doesn’t set a minimum score; each lender sets its own. See VA home loans on Long Island.
- Conventional. Fannie Mae’s automated underwriting dropped its 620 minimum score in November 2025, though many lenders keep their own. Loans sold to Fannie Mae also follow its published waiting periods after major credit events. Compare the details in conventional and jumbo loans on Long Island.
Waiting periods after bankruptcy, foreclosure or a short sale
These are program guidelines, not promises: lenders can add stricter rules, and the rest of your file still has to qualify. Fannie Mae counts from the discharge, dismissal or completion date; FHA measures to the date its case number is assigned.
| Event | FHA guideline | Fannie Mae guideline |
|---|---|---|
| Chapter 7 bankruptcy | At least 2 years since discharge; 12 months to 2 years may be acceptable with documented extenuating circumstances and a documented ability to manage finances | 4 years from discharge or dismissal; 2 years with documented extenuating circumstances |
| Chapter 13 bankruptcy | At least 12 months of the payout period elapsed, on-time payments for the most recent 12 months and written permission from the bankruptcy court | 2 years from discharge or 4 from dismissal; 2 years from either with documented extenuating circumstances |
| Foreclosure | Generally not eligible within 3 years; exceptions for documented extenuating circumstances (HUD says divorce is not one) | 7 years; 3 years with documented extenuating circumstances, but until year 7 only a principal-residence purchase or a limited cash-out refinance is allowed, and other limits apply |
| Deed-in-lieu of foreclosure | Treated the same as a foreclosure | 4 years; 2 years with documented extenuating circumstances |
| Short sale (preforeclosure sale) | 3 years since the sale must be documented for FHA’s automated TOTAL Scorecard; otherwise the file is downgraded to manual underwriting | 4 years; 2 years with documented extenuating circumstances |
Fannie Mae applies the same 4-year and 2-year periods after a mortgage charge-off, and 5 years (3 with documented extenuating circumstances) after more than one bankruptcy filing in the past seven years. For VA, I check your dates against VA’s current lender handbook.
How to spot a credit repair scam
The FTC says no one can legally remove accurate, current information, and anything a credit repair company can do legally, you can do yourself for little or no cost. Under the federal Credit Repair Organizations Act, the FTC says, it’s illegal for these companies to charge you before they help you, and they must give you a written contract that explains your three-day right to cancel without any charge. Walk away from any company that:
- Wants payment before doing any work.
- Tells you not to contact the credit bureaus yourself.
- Tells you to dispute accurate information, lie on a loan application or file a false identity theft report.
- Offers a “new credit identity,” which the FTC calls a scam.
If your credit needs work, I’d rather show you what to fix now than have a lender turn you down later.
What’s different on Long Island, in New York City and Westchester
- Loan size. Nassau’s August 2026 single-family median was $911,000 and Suffolk’s $760,000, per OneKey MLS (see my monthly Nassau and Suffolk medians). At these prices, loan size can narrow your choices as much as credit does.
- The conforming line. The 2026 one-unit conforming limit is $1,209,750 in Nassau and Suffolk, and the same in the five boroughs, Westchester, Rockland and Putnam. Above it is jumbo territory, where the CFPB says rules vary by lender and usually call for good credit. FHA’s 2026 one-unit limit here is $1,249,125. My pages on Nassau County loan options and Suffolk County loan options walk through the FHA, VA, conventional and jumbo choices in each county.
- Co-op boards. Co-ops are common in New York City and Westchester, and in parts of Long Island. The board usually reviews your credit too and can set its own bar, so ask what the building looks for before you make an offer (see my co-op guide).
- Attorney-led contracts. Your own attorney, as the New York Attorney General advises, reviews the contract and loan documents, so settle credit questions before you sign; my guide to home purchase loans on Long Island covers each stage.
- Independent help. The CFPB suggests a HUD-approved housing counseling agency if you need help improving your credit.
A timeline to get mortgage-ready
- Pull all three reports. Note any errors and the exact dates of any bankruptcy, foreclosure or short sale.
- Dispute what’s wrong early. The FTC suggests waiting, if possible, until a mistake is removed before you apply for a loan for a big purchase like a house.
- Pay every bill on time. Autopay at least the minimums, so a forgotten due date can’t add a new late payment.
- Bring card balances down. Lower balances can help your score and your debt ratio.
- Document hardships. If an event outside your control, such as a serious illness or the death of a wage earner (HUD’s examples), led to a bankruptcy or foreclosure, gather the paperwork; FHA and Fannie Mae allow shorter waits in some documented cases.
- Review with me, then get preapproved. The preapproval itself takes only a soft credit check, so it won’t affect your credit score. The CFPB notes a preapproval letter is based on assumptions and isn’t a promised loan offer, can carry an expiration date and doesn’t commit you to that lender.
- Stay steady until closing. No new credit or undocumented deposits; my Long Island first-time home buyer checklist covers the paperwork.
How I can help review your credit
We can go through your reports together. I’ll flag what a lender is likely to ask about, map your dates against FHA, VA and conventional guidelines, and tell you honestly if waiting could open more options. Send me a note to set up a time.
I don’t make the credit decision. The third-party lender you choose underwrites your file, and I compare which of them can work with your history. I’m a loan originator with Scott Capital Group, and I work with borrowers on Long Island and across downstate New York.
Frequently asked questions
Can I get a mortgage on Long Island with a low credit score?
Possibly. It depends on the program, the lender and the rest of your file. HUD says FHA has lower minimum credit score requirements than most conventional mortgages, and VA has its own guidelines for eligible borrowers. Start with a review of your full credit reports.
Can I buy a house on Long Island with a 600 credit score?
It can work. A 600 score clears HUD’s FHA minimums, VA leaves the minimum to the lender, and Fannie Mae’s automated underwriting no longer has a 620 floor. Lenders can set higher minimums, and the rest of your file has to work too.
Can I avoid PMI with a low credit score?
Not through the score. On a conventional loan, PMI depends on your down payment, and a lower score usually makes it cost more. FHA has its own mortgage insurance, but its annual premium doesn’t change with your score, and VA loans for eligible borrowers have no PMI (VA charges a funding fee unless you’re exempt), so with lower credit, FHA or VA can cost less.
How long after a bankruptcy can I get a mortgage?
For a Chapter 7 bankruptcy, FHA guidelines generally look for at least two years since discharge, and Fannie Mae calls for four years from discharge or dismissal, with shorter periods possible when extenuating circumstances are documented. Lenders may add their own requirements, and meeting a waiting period does not by itself mean approval.
How long after a foreclosure or short sale do I have to wait?
FHA guidelines generally require three years after a foreclosure or deed-in-lieu, measured to the date the FHA case number is assigned. Fannie Mae calls for seven years after a foreclosure and four after a short sale or deed-in-lieu, with shorter periods in some documented extenuating circumstances.
Can a credit repair company remove late payments or collections?
Not if they are accurate and current. The FTC says no one can legally remove accurate, current information from your credit report. You can dispute real errors yourself for free.
Should I wait until my credit is in better shape before talking to a loan officer?
No. Talking early shows which items matter for the programs you are considering and how long any waiting period has left. The CFPB notes that getting preapproved early can be a good way to spot potential issues with your credit in time to correct them.
Will getting pre-approved hurt my credit score?
No. Pre-approval takes only a soft credit check, so it won't affect your credit score. A hard credit inquiry comes later, only when you're ready to move forward with a loan and you authorize it.
Sources
- FTC, Free Credit Reports.
- FTC, Fixing Your Credit FAQs.
- FTC, Credit Repair Organizations Act.
- CFPB, How do I dispute an error on my credit report?
- CFPB, What’s the difference between a prequalification letter and a preapproval letter?
- CFPB, Get a preapproval letter.
- HUD, Single Family Housing Policy Handbook 4000.1 (Update 18 reference copy, last revised August 12, 2026).
- Fannie Mae, Selling Guide B3-5.3-07, Significant Derogatory Credit Events.
- Fannie Mae, Selling Guide B3-5.1-01, General Requirements for Credit Scores (no DU minimum score; per Announcement SEL-2025-09, for casefiles created on or after Nov. 16, 2025).
- HUD, FHA Myths v Facts.
- HUD, FHA Mortgage Limits lookup (FHA Forward, CY2026, Nassau and Suffolk, NY).
- FHFA, 2026 conforming loan limits, full county list (spreadsheet).
- CFPB, Conventional loans.
- VA.gov, Eligibility for VA home loan programs and VA home loan limits.
- OneKey MLS, Footprint Round-Up, September 22, 2026 (August 2026 data).
- New York State Attorney General, Homeowners.
This page is general information, not a commitment to lend or a rate quote. Loan programs, limits and requirements change and are subject to eligibility, credit and property approval, and lender underwriting. Kevin deNeergaard, NMLS #2450179; Scott Capital Group, NMLS #876527. Registered Mortgage Broker – NYS Department of Financial Services. All mortgage loans arranged with third-party providers. Equal Housing Opportunity.