Buying a home with poor credit is challenging but possible through government-backed loans, specialized "non-QM" programs, and strategic financial planning. While conventional lenders typically look for a score of at least 620, several paths exist for those below that threshold. Low-Credit Mortgage Options
: Adding a person with strong credit and steady income to your application can help you secure a loan you wouldn't qualify for alone.
: Be aware that once your mortgage is finalized, your credit score may temporarily drop by 15 to 40 points as the new debt is reported. Best Mortgage Lenders For Bad Credit in April 2026 - CNBC i want to buy a house but have poor credit
: A lower credit score generally results in higher interest rates. For example, while you can get a mortgage at 620, you typically need a score of 760 to unlock the most competitive market rates.
: If you are a veteran or active-duty service member, you may qualify with a score as low as 550 through specialized lenders like Freedom Mortgage . Buying a home with poor credit is challenging
: Some lenders, as noted by CNBC Select , look beyond just the three-digit score to examine your overall debt-to-income ratio and savings. Important Considerations
: Aimed at rural and suburban buyers with low-to-moderate incomes, these may offer flexible credit requirements, though specific location and income limits apply. Strategies to Improve Approval Odds : Be aware that once your mortgage is
: Providing more cash upfront reduces the lender's risk and can sometimes compensate for a lower credit score.