Credit reports mainly show how likely you are to repay debts, but they do not automatically decide if you qualify for a mortgage. However, having a higher credit score usually means you’ll get better rates and more options.

To buy a house with bad credit, start by knowing how lenders view your credit score. Here’s a general guide to what you can expect based on your credit score.

FICO Score:

Less than 580: Theoretically, borrowers Less than 580: You might still qualify for a loan with a FICO score below 580, even as low as 500. If your score is between 500 and 579, you’ll only be able to get an FHA loan. Because lenders consider this risky, the Federal Housing Administration requires insurance for these loans. You’ll also need to make at least a 10% down payment and pay off any unpaid collections or judgments to qualify.

Between 580 and 669 may also qualify for an FHA loan, but won’t necessarily have to put as much money up front. Many borrowers in this range may qualify for an FHA loan with as little as 3.5% down. Perhaps even more importantly—for some—this is the range that qualifies borrowers for Department of Veterans Affairs (VA) loans. This range is also the range borrowers may be able to apply for a conventional loan (if they meet other requirements).

740–799: If your score is in this range, lenders see you as having very good credit. You’ll likely get more credit and better rates.

800 or more: A credit score of 800 or higher shows lenders you are a very low risk. You are most likely to get the largest loans and the best rates available.

Home loans are available to people with bad credit. Still, the higher your credit score, the more options you’ll have.

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026.  All rights reserved

References

(2024). What is a credit report?. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-report-en-309/

(2026). FHA Loan Requirements in 2026. FHA.com. https://www.fha.com/fha_loan_requirements

(2025). FHA Home Loan Down Payments. FHA.com. https://www.fha.com/fha_article?id=4034

(2024). VA Home Loan Entitlement And Limits. U.S. Department of Veterans Affairs. https://www.va.gov/housing-assistance/home-loans/loan-limits/

(2024). FICO Scores and Your Credit. FHA.com. https://www.fha.com/define/fico-score

Doyle, A. B. & Arnone, J. (2026). Best Conventional Mortgage Lenders of 2026. NerdWallet. https://www.nerdwallet.com/mortgages/best/conventional-mortgage-lenders

Finance, K. P. (December 31, 2025). What Is a Good Credit Score?. Kiplinger. https://www.kiplinger.com/personal-finance/what-is-a-good-credit-score

Team, L. (2026). What Can an 800 Credit Score Get You: Rates & Rewards. LegalClarity. https://legalclarity.org/what-can-an-800-credit-score-get-you-rates-rewards/