At HomyLoan, we help you compare a wide range of home loan options, including bad credit mortgage programs. A low credit score doesn't automatically keep you from owning a home. FHA, VA, USDA and non-QM programs may help credit-challenged borrowers qualify, subject to credit approval.
The basics
At HomyLoan, we believe a low credit score shouldn't automatically keep you from homeownership. Bad credit mortgage options include flexible FHA and non-QM loan programs for credit-challenged buyers, with guidance from a licensed loan officer at every step.
How it works
Past credit trouble doesn't have to end the conversation. A licensed loan officer helps you see where you stand and what may work.
Your loan officer pulls your credit with your permission and walks you through what lenders will see.
Together you compare FHA, VA, USDA and non-QM options to find the ones you may qualify for.
Share income, asset and credit documents. Any explanations for past credit events go into your file.
The lender reviews your file, subject to credit approval. Review your Closing Disclosure, sign and get your keys.
Loan programs
While a low credit score can make conventional financing difficult, several government-backed programs may help credit-challenged borrowers qualify for a home loan, subject to credit approval.
Best for
Buyers with low credit scores and minimal cash for a down payment.
Down payment as low as 3.5% with a 580+ credit score, or 10% down with a score of 500–579. Seller-paid closing costs allowed up to 6%.
Best for
Eligible veterans, active-duty service members and certain surviving spouses.
No VA-set minimum credit score (lender requirements apply). No down payment required in most cases and no private mortgage insurance (PMI).
Best for
Low-to-moderate income buyers purchasing in USDA-approved rural areas.
Credit requirements vary by lender. No down payment required ($0 down) in eligible areas, subject to household income limits.
Build your credit
Even if you qualify for a bad credit mortgage today, a higher credit score may help you get better terms in the future, including when you refinance. Building credit takes time and patience, but these tips can help:
Keep credit card balances below 30% of your limits to help raise your score.
Consolidate high-interest debt, possibly with a cash-out refinance.
Check your credit reports at least yearly and dispute any errors promptly.
Homy is online
Hi, it's Homy! I can explain loan programs, down payments and the steps to buy or refinance in Texas. For advice on your situation, a licensed loan officer is one tap away.
Homy gives general information, not a loan offer or approval. HomyLoan, LLC is a licensed mortgage broker, NMLS 2783307.
HomyHomyLoan assistantHomy is an automated assistant, not a loan officer, and answers are general information. Please don't share your Social Security number or account numbers in chat. How chat data is used
Possibly. Government-backed programs like FHA, plus some non-QM loans, can work for borrowers with lower scores or past credit events, subject to credit approval and program guidelines.
FHA guidelines allow 3.5% down with a 580 or higher score and 10% down with scores from 500 to 579. Individual lenders may set higher minimums.
Often, yes, after a waiting period. Waiting periods differ by loan type and by the kind of credit event, so your loan officer will check which programs you may qualify for now.
A full mortgage pre-approval usually involves a credit check. Mortgage credit inquiries made within a short shopping window are generally treated as a single inquiry for scoring.
Pay bills on time, lower credit card balances, avoid new debt before closing and save for a larger down payment if you can. Writing explanations for past credit events can also help.
Usually. Lower credit scores and some non-QM programs generally come with higher rates or costs, which is why comparing lenders matters.