Published July 4, 2026 · MortgageLoan.net Editorial
Written and reviewed by the MortgageLoan.net Editorial Team · Last updated July 2026
The short answer
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.
| 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%+ |
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.
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.
Check current rates
A lower score does not get quoted the same everywhere, and the spread between lenders widens as scores fall. Seeing today’s rate range first tells you whether an offer you get is fair for your band or simply the worst one you were shown.
Compare today’s mortgage rates →
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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.
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.
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.
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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