How To Qualify To Buy A House With Bad Credit May 2026

: 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 .

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 how to qualify to buy a house with bad credit

Lenders often set their own "overlays," typically at . : Insured by the Federal Housing Administration ,

: Obtain free reports from AnnualCreditReport.com to identify and contest inaccuracies. Offers non-QM loans for those with past foreclosures

Most borrowers with credit challenges find success through government-insured loans, which mitigate lender risk.

Even a small boost in score before applying can save thousands in interest over the life of a 30-year loan.

The USDA does not set a hard minimum, but most lenders require a for automated approval. Strategies to Qualify