Reader question: “I’ve been researching this question all over the Internet, and I’m more confused now than when I first began. My middle credit score is a little over 500. Is it possible to get a mortgage loan with a FICO score in this range?”

The FHA loan program might be your best (and only) option. The FHA’s minimum requirement for credit scores is 500. But you still have to be approved by a lender in the private sector, and most of them will not entertain a score that low.

Wells Fargo was in the news earlier this year for lowering their FHA credit requirements to 500, but I have yet to confirm this through the company. It was in the New York Times, though. So you can probably trust the source. Scroll to the bottom of this story and you’ll see the part about Wells Fargo, credit score of 500, etc. This lender has essentially lowered its FICO score requirements to match those set forth by the FHA.

But while you might qualify for an FHA mortgage loan with a credit score of 500, you’ll also face a larger down payment. Borrowers with good credit can qualify for the 3.5% down-payment program, which is what makes these loans so popular to begin with.