Buying a home with "bad credit" (typically defined as a ) is possible in 2026, though it often requires navigating specific government-backed loan programs and meeting stricter down payment or income requirements. While conventional loans usually demand a 620 score, alternatives like FHA loans can accept scores as low as 500 with a 10% down payment. Top Loan Options for Low Credit
If your credit is less than ideal, these specialized programs are the most common paths to approval:
Designed for rural and suburban areas, these also offer $0 down . While they typically prefer a 640 score , some lenders may approve lower scores through manual underwriting.
The most accessible option, allowing for a 580 score with only 3.5% down . If your score is between 500–579 , you can still qualify but must provide a 10% down payment .
