How to Buy a House With Bad Credit

It's challenging to buy a house with bad credit. It helps to have a down payment.
Holden Lewis
Hal M. Bundrick, CFP®
By Hal M. Bundrick, CFP® and  Holden Lewis 
Updated
Edited by Beth Buczynski Reviewed by Michelle Blackford

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Buying a house with bad credit — or, more accurately, a low credit score — can be challenging, but it’s not impossible.

Purchasing a home requires having money for a down payment, a solid history of paying your bills over at least the past year or two and a steady income. You’ll also need to meet the lender’s minimum credit score requirements. While higher credit scores earn more favorable loan terms, it's still possible to buy a home with bad credit.

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Mortgage loans from our partners

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

Prosperity Home Mortgage - PURCHASE logo
Check Rate

on Prosperity Home Mortgage

Prosperity Home Mortgage

4.0

NerdWallet rating 
Prosperity Home Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
580

Min. down payment 

0%

Check Rate

on Prosperity Home Mortgage