: If you are a veteran or active-duty service member, VA loans often have no official minimum credit score, though many lenders look for at least a 620.
: While a letter to the lender is helpful, many realtors, including the California Association of Realtors , advise against writing personal letters to sellers due to potential fair housing concerns. How To Buy A House With Bad Credit | Loan Options 2026 buying first house with bad credit
: Be prepared for higher rates. Lenders charge more to offset the risk of a lower credit score. : If you are a veteran or active-duty
Buying your first home with a low credit score is challenging, but it is not impossible. Many buyers successfully navigate this by using specialized loan programs and taking strategic steps to strengthen their application. Key Loan Options for Lower Credit Scores Lenders charge more to offset the risk of
: A larger "skin in the game" can sometimes offset the risk of a lower credit score in a lender's eyes.
: Lenders at institutions like Citizens Bank may ask for a letter explaining past financial hardships. Be sure to provide specific dates, dollar amounts, and proof that the situation is now resolved.
: Backed by the Federal Housing Administration, these are the most common choice for buyers with bad credit. You can qualify with a score as low as 500 with a 10% down payment, or 580 with just 3.5% down.