Home / Buying with Low Credit
Buying a Home with Low or Bad Credit
Many people think they need perfect credit to buy a home. They don't. Here is what the most common loans actually ask for.
Your credit score helps decide which loan you can use, how much you put down and your interest rate. But there are options for almost every situation, and a few months of good habits can make a big difference.
Credit scores by loan type
FHA
FHA rules allow 580+ with 3.5% down, or 500–579 with 10% down. Many lenders set a slightly higher minimum, so it pays to compare.
Conventional
Usually around 620 or higher. Better credit usually means a lower rate and cheaper mortgage insurance.
VA
For veterans and service members. The VA has no set minimum, but lenders set their own (often around 620).
No credit history
Some lenders accept rent, utility or phone payments to show you pay on time.
Have an ITIN?
There are loans for ITIN holders without a Social Security number. See how it works →
Your next steps
- Check your credit report free at annualcreditreport.com and dispute any errors.
- Pay every bill on time and pay card balances down (ideally under 30% of the limit).
- Don't open new accounts or buy a car right before buying a home.
- Talk to a lender: they'll tell you exactly what to improve and how long it may take.
Common questions
What is the minimum credit score to buy a house?
FHA rules allow from 500 with 10% down, or 580 with 3.5% down. Many lenders ask for more, such as 620.
Can I buy a house with no credit history?
Sometimes. Some lenders accept rent, utility or phone payments as history.
How long does it take to raise my credit score?
It depends. Many people see changes within a few months by paying on time and lowering balances.
Can you help in Spanish?
Yes. I work in English and Spanish and can introduce you to a bilingual lender.
Sources: FHA/HUD credit score guidelines (HUD Handbook 4000.1); annualcreditreport.com. Updated November 2026. General information; each lender sets its own requirements.
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