: Insured by the Federal Housing Administration , these are the standard choice for low-credit buyers. 580+ Score : Eligible for a 3.5% down payment . 500–579 Score : Eligible with a 10% down payment .
The USDA does not set a hard minimum, but most lenders require a for automated approval. Strategies to Qualify
: If automated systems reject you, ask for manual underwriting . A human underwriter will review your full financial story, including on-time rent and utility payments. how to qualify to buy a house with bad credit
If your score is on the borderline, lenders look for "compensating factors" to offset the perceived risk.
: As of 2026, some programs allow lenders to count rent, utility, and cell phone payments as proof of creditworthiness for those with thin or poor credit files. : Insured by the Federal Housing Administration ,
: A larger down payment (e.g., 10%–20%) significantly reduces lender risk and may lead to approval despite a low score.
Offers non-QM loans for those with past foreclosures or bankruptcies. 580 (FHA/VA) Provides specific grants for very low-income buyers. Freedom Mortgage 550 (FHA) Specialized in flexible FHA and VA products. Credit Requirements for FHA Loans The USDA does not set a hard minimum,
Most borrowers with credit challenges find success through government-insured loans, which mitigate lender risk.