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12 Best Home Loans for Low Credit Scores of May 2026
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12 Best Home Loans for Low Credit Scores of May 2026

Georgia Rose
Kate Wood
+1
Georgia Rose
+2
Written by 

Georgia Rose

,  Reviewed by 

Kate Wood

,  Edited by 

Dawnielle Robinson-Walker

Written by 

Georgia Rose

 and 
2 others
Last updated 05/01/2026
So your credit isn’t perfect — it happens. With low credit or bad credit, you still have mortgage options, like FHA mortgage loans. See NerdWallet’s picks for the best low credit home loans, including lenders open to a 500 credit score.
 

This service is free and will not affect your credit score.

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Can I get a mortgage with a 500 credit score?

Yes, it’s possible, but your options are limited — and you still might not qualify. To improve your chances, it helps to be financially strong in other areas.
Here are some things lenders like to see:
  • A steady, reliable income.
  • A low amount of debt compared to your income.
  • A larger down payment (at least 10%).
  • Savings or cash reserves in the bank.
  • A history of paying bills on time, even if your credit score is low.
FHA loans are the most widely used for borrowers with lower credit scores. The program allows credit scores as low as 500, but you’ll typically need to put down at least 10% if your score is below 580.
By comparison, conventional loans — the most common type of mortgage overall — usually require a credit score of at least 620.
That said, there are occasional exceptions. While researching lenders for this list, we found that Network Capital, NewRez, Real Genius, Rate and Lower may accept credit scores below 600 for conventional loans if borrowers meet certain additional criteria.
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Best for credit scores in the 500s

Rate

NMLS#2611

NerdWallet rating

4.0

Home loans overall
Min. credit score

620

Min. down payment

3%

GET MY RATE

Our take on Rate

The Nerdy headline

Rate boasts a streamlined application process, with full underwriting in as little as one business day — though for all its online conveniences, you'll still work with a human.

What we like
  • Fully underwritten mortgage approval in as little as one day for qualified borrowers.
  • Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
  • Advertises a fixed-rate HELOC that can be funded in as few as five business days.
What we don't like
  • Some affordable loan options have income limits or other restrictions.
  • Details of less common loan types aren't available on the lender's website.
  • HELOC requires immediate, full withdrawal of funds, though there is an option to make additional draws.
Read our full review of Rate

Best for closing cost assistance

Movement Mortgage

NMLS#39179

NerdWallet rating

4.0

FHA loans
Min. credit score

620

Min. down payment

3.5%

GET MY RATE

Our take on Movement Mortgage

The Nerdy headline

Movement Mortgage, known for FHA loans, shares profits with its foundation to fund schools and community projects. However, it doesn’t post mortgage rates online, and average FHA fees are a little high.

What we like
  • Major FHA lender, by loan volume.
  • Offers down payment and closing cost assistance for FHA loans, with no income limits.
  • Profit-sharing model supports charitable giving through the Movement Foundation.
What we don't like
  • Average FHA origination fees are on the high side.
  • FHA mortgage rates are on the high side.
  • Doesn’t post mortgage rates online.
Read our full review of Movement Mortgage

Best for closing cost assistance

Guild Mortgage

NMLS#3274

NerdWallet rating

4.5

FHA loans
Min. credit score

540

Min. down payment

3.5%

GET MY RATE

Our take on Guild Mortgage

The Nerdy headline

Guild is a major FHA lender by loan volume, with options for a variety of FHA loan borrowers, but loans aren't available in every state.

What we like
  • Major FHA lender, by loan volume.
  • Offers a strong variety of FHA loan types for purchase and refinance.
What we don't like
  • Mortgage rates aren’t posted online.
  • Licensed in most states, but not all.
Read our full review of Guild Mortgage

Best for VA loans

loanDepot

NMLS#174457

NerdWallet rating

5.0

VA loans
Min. credit score

520

Min. down payment

0%

GET MY RATE

Our take on loanDepot

The Nerdy headline

Good for: borrowers who want an easy online application and a variety of loan types to explore.

What we like
  • Has branches across the country for customers who prefer face-to-face service.
  • Receives high marks for customer satisfaction, according to Zillow.
  • APRs for VA loans are more competitive than average.
What we don't like
  • Mortgage rates aren't available online; you'll need to contact a loan officer.
  • Does not have a mobile app with mortgage features.
Read our full review of loanDepot

Best for down payment assistance for low income borrowers

CrossCountry Mortgage

NMLS#3029

NerdWallet rating

4.0

FHA loans
Min. credit score

500

Min. down payment

3.5%

GET MY RATE

Our take on CrossCountry Mortgage

The Nerdy headline

CrossCountry is a major FHA lender by loan volume, with options for a variety of FHA loan borrowers. FHA rates and fees may be higher than you'll find at other lenders.

What we like
  • Major FHA lender, by loan volume.
  • Offers a strong variety of FHA loan types for purchase and refinance.
What we don't like
  • Average FHA origination fees are on the high side.
  • Average FHA interest rates are higher than competitors.
Read our full review of CrossCountry Mortgage

Best for existing Flagstar customers

Flagstar

NMLS#417490

NerdWallet rating

4.0

FHA loans
Min. credit score

580

Min. down payment

3.5%

GET MY RATE

Our take on Flagstar

The Nerdy headline

Flagstar offers a standard array of FHA loans, including cashout and streamline refinancing, and you can browse personalized rates online. Branches are not available in all states.

What we like
  • You can see personalized FHA rates online without providing your contact details.
  • Offers down payment assistance programs to borrowers in qualifying areas.
What we don't like
  • Branches are only available in nine states.
  • Average FHA rates and fees are higher than many competitors.
Read our full review of Flagstar

Best for history of bankruptcy

Carrington

NMLS#2600

NerdWallet rating

4.5

FHA loans
Min. credit score

500

Min. down payment

3.5%

GET MY RATE

Our take on Carrington

The Nerdy headline

Carrington is a big FHA lender by loan volume, and average FHA rates are low, though average FHA fees are on the high side.

What we like
  • FHA loans make up a large share of Carrington's total home loans.
  • Offers low FHA mortgage rates compared with other lenders.
What we don't like
  • Average FHA origination fees are on the high side.
  • Branches are only available in nine states.
Read our full review of Carrington

Best for accessibility

Newrez

NMLS#3013

NerdWallet rating

3.5

Home loans overall
Min. credit score

580

Min. down payment

3%

GET MY RATE

Our take on Newrez

The Nerdy headline

In addition to pretty robust standard offerings, Newrez has loan options for borrowers who have unusual finances or nontraditional income. But there's limited info about these offerings online, plus Newrez doesn't post sample mortgage rates — even for common loan types.

What we like
  • Offers loans for borrowers who've faced financial challenges or credit events, as well as self-employed borrowers.
  • Faster-than-average closing time.
What we don't like
  • Doesn’t post mortgage rates online.
  • Higher-than-average fees and rates compared to other lenders NerdWallet reviews.
Read our full review of Newrez

Best for ITIN loans

Network Capital

NMLS#11712

NerdWallet rating

4.5

Home loans overall
Min. credit score

620

Min. down payment

3%

GET MY RATE

Our take on Network Capital

The Nerdy headline

Network Capital stands out for its focus on borrowers with lower credit score, and offering competitive refinance products.

What we like
  • Cash-out refinancing is an uncommon specialty, so Network Capital could appeal to that borrower.
  • Offers HELOCs for homeowners who want to access their equity without refinancing.
What we don't like
  • Home buyers should know the lender doesn’t specialize in purchase loans.
  • Borrowers must be contacted for a quote before completing an online application.
Read our full review of Network Capital

Best for credit scores in the 500s

Lower

NMLS#1124061

NerdWallet rating

4.0

FHA loans
Min. credit score

500

Min. down payment

3.5%

GET MY RATE

Our take on Lower

The Nerdy headline

Lower stands out for its attractive FHA interest rates and flexibility for borrowers with bad credit, accepting scores as low as 500.

What we like
  • Big FHA lender, by loan volume.
  • Accepts borrowers with low credit scores.
  • Average FHA interest rates are on the low side.
What we don't like
  • Sample mortgage rates are not customizable.
  • No mobile app.
  • Mortgages are not available in Hawaii, New York and Vermont.
Read our full review of Lower

Best for FHA loans

Real Genius

NMLS#2389303

NerdWallet rating

4.5

FHA loans
Min. credit score

580

Min. down payment

N/A

GET MY RATE

Our take on Real Genius

The Nerdy headline

Real Genius is a smart pick for a do-it-yourself online quote, with a wide variety of FHA loan products on offer. We’re impressed with its detailed, “no fine print” approach and options to sort and customize APR and fees.

What we like
  • Easy and transparent online rate quote tool.
  • Offers a strong variety of FHA loan types for purchase and refinance.
  • Closes loans in an average of 30 days (faster than industry average).
What we don't like
  • Federal data isn’t available for us to objectively compare this lender with others.
  • Not currently lending in U.S. territories.
Read our full review of Real Genius

Best for fixer-uppers

Cardinal - PURCHASE - FHA

NMLS#66247

NerdWallet rating

4.0

FHA loans
Min. credit score

Did not disclose

Min. down payment

N/A

GET MY RATE

Our take on Cardinal - PURCHASE - FHA

The Nerdy headline

Cardinal Financial is a big FHA lender by loan volume, but average FHA rates and fees are on the higher side, and rates aren't posted online.

What we like
  • FHA loans make up a large share of Cardinal's total home loans.
  • Big FHA lender, by loan volume.
What we don't like
  • Average FHA origination fees are on the high side.
  • No rates posted online.
Read our full review of Cardinal - PURCHASE - FHA

How we chose the best low credit mortgage lenders

Our team of mortgage experts follows an objective, consumer-first methodology to assess 40 lenders and pick the best.

40+

Lenders reviewed

We review over 40 lenders, including major banks, credit unions, and online lenders operating across multiple states.

12

Categories assessed

Each lender is evaluated across 12 weighted categories, including specialized products for low-credit borrowers, minimum stated credit scores, rates and fees, types of loans offered, rate transparency and customer experience.

11,000+

Data points analyzed

Our team tracks and reassesses thousands of data points annually for reviewed lenders, ensuring up-to-date, accurate comparisons across multiple loan types.

Star rating categories

We evaluate the following categories and carefully weigh how each factor impacts your experience.
The star ratings on this page reflect each lender's rating for FHA products (read more about how we determine FHA ratings), VA products (read more about how we determine VA ratings), or home loans overall (read more about how we determine overall ratings for conventional loans).
NerdWallet rates mortgage lenders based on what matters most to borrowers: rates and fees, product accessibility, customer experience, rate transparency and the range of loan options.
We review more than 40 lenders and score them using a weighted system that prioritizes affordability and a smooth borrowing experience. Lenders earn higher scores for offering lower borrowing costs, making loans widely available, clearly displaying rate information and supporting borrowers from application through closing.
We use a mix of lender-provided information, publicly available data and our own research and analysis to evaluate each lender. Recent regulatory actions may affect a lender’s score.
Read more about how NerdWallet rates mortgage lenders here.
For inclusion in this roundup, lenders need to share credit score requirements with NerdWallet and offer at least one loan product where the stated credit score minimum is 600 or lower. Additionally, the lender must offer at least one product or feature that accommodates borrowers with lower credit scores. This product or feature needs to be in addition to or separate from offering government-backed loans.
NOTE: These credit scores are the most recent ones shared with NerdWallet, but they can change. Approval isn’t guaranteed, since your score is just one factor lenders consider. Want to see credit score minimums for other home loan types? Tap the “?” in the credit score column.
Video thumbnail

Low credit home loans: What are my options?

Government-backed mortgage programs often have more flexible credit requirements than conventional loans. The most common options include:
Type of loan
Backed by
Focus
Minimum down payment
FHA loans
Federal Housing Administration
All home buyers
3.5% (with a credit score 580+)
10% (with a credit score 500-579)
VA loans
Department of Veterans Affairs
Active military and veterans
0%
USDA loans
U.S. Department of Agriculture
Mostly rural areas
0%
MORE NERDY PERSPECTIVE 🤓
Abby Badach Doyle
I have bad credit. Which mortgage is best for me?
In most cases, you’ll probably end up looking at FHA loans. You can get an FHA loan with a credit score as low as 500 if you meet other qualifications (like making a 10% down payment). Less common options include special mortgages — not government or conventional — called non-QM loans. My best advice: Talk to a couple of these lenders IRL. Be honest about your overall financial situation. They can’t help you unless they know the full picture, including your debt and savings.
- Abby Badach Doyle, Lead Writer, Mortgages

How to get a home loan with bad credit

Mortgage loans don’t have guaranteed approval, despite what a lender's marketing material may say. You have to apply and prove that you can pay the loan back in order to borrow the money. When you apply for a mortgage, lenders want to know your history of handling money. To do that, they look at these four things:
  1. Your credit score.
  2. Your debt load compared to what you earn, called your debt-to-income ratio or DTI.
  3. Your job history.
  4. The size of your down payment.
If you are weak in one area, a strong point in another might help. Let’s look at what things you can control to help get your loan approved.
» MORE: How to buy a house with bad credit
🤓

Nerdy Tip

Want personalized advice? Find a housing counselor through the U.S. Department of Housing and Urban Development (HUD) for free or low-cost help. They can help you make a plan to build your credit and buy a house.

1. Credit score

Where to start: Before you buy a house, find out your credit score — and how to build it. Need ideas? See our guide to real ways to raise your credit fast.
Your credit score affects which home loans you can get, your interest rate and how much money you need to pay upfront.
You may be able to qualify for a mortgage with a credit score that's as low as 500. However, you might have to make a larger down payment and pay a higher interest rate.
It takes time to bump your credit, but a higher score can help you start off your home loan on better terms. A good credit score to buy a house is at least 620. That saves you money in the long run.

2. Debt-to-income ratio

Where to start: Review your current bills and loans. Then, pay down what you can. See our tips to pay off debt before you take on a big loan like a mortgage.
To figure out your debt-to-income ratio, or DTI, a lender will divide your total monthly bills (like car payments or student loans) by your monthly pre-tax income.
Most lenders will look for a DTI that's 36% or lower (including your housing costs). A lender that allows a higher DTI probably charges higher interest rates.
You can lower your DTI by paying down existing debts. While you're getting ready to buy a house, avoid taking on any more debt or making big purchases.
» MORE: See how much you could borrow to buy a home

3. Employment history

Where to start: Avoid making any job changes until after you close on a house. The steadier, the better.
You can't change your work history, but you can do your best to make sure you have a steady job before you apply for a mortgage. (To get a self-employed mortgage, expect to do a little more paperwork.) If you change jobs or get laid off during the mortgage underwriting process, it can be harder to get the loan approved.
» MORE: How to get a mortgage without a 2-year work history

4. Down payment

Where to start: Put down as much as you can comfortably afford. To a lender, a larger down payment can offset a lower credit score.
The minimum down payment to buy a house depends on what type of home loan you're getting. You don’t typically need 20% down to buy a house, but a higher amount will generally get you a better interest rate.
Keep some cash in your emergency savings, but try to put down as much as you can comfortably afford.
State-sponsored first-time home buyer programs offer down payment assistance and grants that can give your savings a boost.
» MORE: How to get down payment assistance when buying a house
The bottom line? Shop around. You may qualify for a home loan with some lenders but not others, and you'll want to compare the different offers. Look closely at the rates and fees to see which mortgage lender is offering you the best deal.
More from NerdWallet:

Frequently asked questions

  • Can I get a home loan with a 500 credit score?

    A 500 is the absolute lowest credit score needed to buy a house. On paper, that score enables you to qualify for a loan backed by the Federal Housing Administration with a 10% down payment. In reality, however, few lenders will accept a score that low. Bringing up your credit score can give you more loan options, get you a lower interest rate and allow you to make a smaller down payment.

  • What mortgage lenders will work with bad credit?

    Mortgage lenders' requirements for borrowers vary, but if you have bad credit you should look for lenders that are willing to consider alternative credit data. That means they will review aspects of your financial situation, like on-time rent and utility payments, that aren’t normally reported to the credit bureaus. You'll have to provide the lender with documentation of this info.

  • Can you still get a mortgage with a low credit score?

    Yes. Having a stable employment history and saving up a larger down payment can help offset a weaker credit score. Some kinds of mortgages, like FHA loans, have lower minimum credit score requirements. That said, if you can build your credit first, it will help you not only get a mortgage but also get a better interest rate. That can potentially save you thousands of dollars.

  • What is the easiest mortgage to qualify for?

    The easiest mortgage to qualify for depends on you. While FHA loans are known for allowing lower minimum credit scores, a VA loan or a USDA loan may be easier to qualify for if you fit their requirements. For a VA loan you need to be an active or retired member of the military or a military spouse. USDA loans have income and location requirements.