Written and reviewed by the MortgageLoan.net Editorial Team · Last updated July 2026
The short answer
- You can get a mortgage with bad credit. FHA loans allow scores as low as 580 with 3.5% down (or 500–579 with 10% down), and VA loans are flexible for eligible veterans.
- The best bad-credit lenders are high-volume FHA specialists and lenders offering manual underwriting or non-QM programs — not the big-bank prime lenders that auto-decline lower scores.
- Expect a higher rate. Comparing several offers matters even more with weak credit, because pricing differences between lenders widen at the low end of the score range.
A low credit score narrows your options, but it rarely closes the door. Government-backed loans exist precisely so borrowers with imperfect credit can still buy. The key is choosing lenders that specialize in these programs and comparing enough offers to avoid overpaying. Here’s how.
Wondering if you qualify with your score? Compare bad-credit-friendly mortgage offers free.
Minimum credit scores by loan type
| Loan type | Typical minimum score | Down payment |
|---|---|---|
| FHA | 580 (or 500 with 10% down) | 3.5% |
| VA (eligible veterans) | No set VA minimum; lenders often want ~580–620 | 0% |
| USDA (rural) | Often ~640 | 0% |
| Conventional | 620 | 3%+ |
What to look for in a bad-credit lender
- FHA expertise: lenders that close a high volume of FHA loans are more comfortable with lower scores and higher debt ratios.
- Manual underwriting: some lenders will look at compensating factors — steady income, reserves, rental history — instead of relying only on an automated score cutoff.
- Non-QM options: for unusual situations, non-qualified-mortgage programs exist, though they carry higher rates.
- Transparent fees: subprime-adjacent lending sometimes hides cost in points; read the Loan Estimate carefully.
Which lenders work best for lower scores
Big digital and bank lenders such as Rocket, Chase, and Better serve prime borrowers well but tend to auto-decline weaker credit. For bad credit, favor FHA-specialist mortgage lenders, mortgage brokers who can shop multiple wholesale lenders on your behalf, and credit unions willing to manually underwrite. Because pricing varies most at the low end of the credit spectrum, gathering several quotes is the difference between a workable rate and an expensive one.
See which lenders you qualify with in a few minutes — comparing offers is free and won’t affect your credit score.
Improve your score first — or buy now?
If you’re within a few months of crossing a score threshold (for example, from 660 to 680), waiting can meaningfully lower your rate. If not, buying now with an FHA loan and refinancing later once your credit improves is a common and valid strategy. Our guide to the best mortgage lenders overall and FHA vs. conventional can help you plan that path.
Frequently Asked Questions
What is the lowest credit score to buy a house?
FHA loans allow scores as low as 500 with 10% down, or 580 with 3.5% down. VA loans have no set minimum, though most lenders want around 580–620. Conventional loans generally require 620.
Can I get a mortgage with a 550 credit score?
Yes, typically through an FHA loan with a 10% down payment, or a VA loan if you’re an eligible veteran. Expect a higher rate and work with an FHA-specialist lender.
Will a bad-credit mortgage have a higher interest rate?
Yes. Lower scores carry higher rates because they represent more risk to the lender. Comparing several offers is especially important since lender pricing differences widen at lower scores.
Should I fix my credit before applying?
If a small improvement would cross a scoring threshold within a few months, waiting can lower your rate. Otherwise, buying now with FHA and refinancing after your credit improves is a common approach.
See real offers for your credit profile — comparing quotes is free and won’t lower your score.
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