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
: 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 . how to qualify to buy a house with bad credit
: Pay down credit card balances to below 30% of your total limit; this can sometimes boost a score by 30+ points in a single billing cycle. Offers non-QM loans for those with past foreclosures
Most borrowers with credit challenges find success through government-insured loans, which mitigate lender risk. Credit Requirements for FHA Loans : Insured by
: 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.
If your score is on the borderline, lenders look for "compensating factors" to offset the perceived risk.
: Ask a family member with excellent credit to add you as an authorized user on their oldest, well-managed account. Top Lenders for Challenging Credit (2026) Minimum Score Focus Key Benefit Guild Mortgage 540 (FHA/VA) Connects to 700+ down payment assistance programs. New American Funding 580 (FHA/VA)