How To Qualify To Buy A House With Bad Credit May 2026

: Pay down credit card balances to below 30% of your total limit; this can sometimes boost a score by 30+ points in a single billing cycle.

: Insured by the Federal Housing Administration , these are the standard choice for low-credit buyers. 580+ Score : Eligible for a 3.5% down payment . 500–579 Score : Eligible with a 10% down payment . how to qualify to buy a house with bad credit

Offers non-QM loans for those with past foreclosures or bankruptcies. 580 (FHA/VA) Provides specific grants for very low-income buyers. Freedom Mortgage 550 (FHA) Specialized in flexible FHA and VA products. Credit Requirements for FHA Loans : Pay down credit card balances to below

: If automated systems reject you, ask for manual underwriting . A human underwriter will review your full financial story, including on-time rent and utility payments. 500–579 Score : Eligible with a 10% down payment

: As of 2026, some programs allow lenders to count rent, utility, and cell phone payments as proof of creditworthiness for those with thin or poor credit files.

Benefits include and no monthly mortgage insurance.

: Obtain free reports from AnnualCreditReport.com to identify and contest inaccuracies.