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Bad credit does not automatically rule out a mortgage. For many U.S. buyers, FHA is a sensible place to start; eligible servicemembers, veterans and qualifying surviving spouses should also compare VA loans, while USDA may work for buyers who meet its property-location and household-income rules. A lender’s published minimum score is only an entry point—not a promise of approval or a measure of what the loan will cost.
In NerdWallet’s 2026 comparison, CrossCountry Mortgage, Carrington, Newrez and Lower are reported to accept FHA applicants with scores as low as 500. Guild is listed at 540, and Real Genius and Rate at 580. Those figures are reported lender thresholds, not guarantees; confirm current requirements and compare personalized written Loan Estimates before choosing.
Which mortgage lenders report low FHA score minimums?
The lender figures below come from NerdWallet’s 2026 editorial comparison. They are reported minimums for FHA applications, not approval odds, and a lender may apply additional requirements to a particular borrower, property or loan. A low advertised threshold also does not establish that a lender offers the lowest rate or fees.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware match| Lender | Reported FHA minimum | What to know |
|---|---|---|
| CrossCountry Mortgage | 500 (NerdWallet, 2026) | NerdWallet flags higher-than-competitor FHA rates or fees; compare the full written offer rather than choosing on score minimum alone. |
| Carrington | 500 (NerdWallet, 2026) | NerdWallet flags higher-than-competitor FHA rates or fees; verify current terms and total costs. |
| Newrez | 500 (NerdWallet, 2026) | Reported threshold only; confirm current availability, underwriting criteria and costs directly. |
| Lower | 500 (NerdWallet, 2026) | Reported threshold only; confirm current availability, underwriting criteria and costs directly. |
| Guild | 540 (NerdWallet, 2026) | Yahoo Finance’s October 2026 roundup also identifies Guild for alternative credit. Treat that as a lead, not confirmation of a particular program; ask Guild what documentation and requirements apply. |
| Real Genius | 580 (NerdWallet, 2026) | NerdWallet describes a detailed online rate tool. Use it as a quote-comparison aid, not as a substitute for a personalized Loan Estimate. |
| Rate | 580 (NerdWallet, 2026) | Reported threshold only; confirm current availability, underwriting criteria and costs directly. |
Yahoo Finance’s September 30, 2026 roundup also names PNC, Pennymac, Guild, Rocket Mortgage and New American Funding in categories including FHA, military-connected applicants, alternative credit, renters, and prior bankruptcy or foreclosure. The roundup’s specific lender details are not independently established here. Ask each lender about the exact product, score policy, state availability, assistance and pricing rather than assuming a category label guarantees a fit.
Can you buy a home with a 500 credit score?
Possibly, but a 500 score narrows the choices and does not by itself qualify you. NerdWallet’s 2026 comparison reports some FHA lenders with a 500 minimum. Its FHA overview describes a minimum down payment of 10% for scores from 500 through 579, compared with 3.5% at 580 or higher. These are program-level generalizations and reported thresholds; a lender’s additional underwriting rules still apply. FHA loans also carry mortgage insurance, which affects the cost of borrowing.
A score minimum is not an approval probability. Lenders also review income, debts, savings, down payment, payment history and the property. If your score is near a lender’s stated floor, ask what score model and credit bureaus it uses, whether the threshold applies to your loan type and application, and what other conditions must be met before spending time or money on an application.
Rank #2
Which loan programs should you compare?
The most suitable option depends on eligibility as well as score. The figures below describe the reviewed sources’ general guidance, not a universal rule for every lender or application.
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| Loan path | Credit and down-payment guidance in the reviewed sources | Key qualification or cost to check |
|---|---|---|
| FHA | NerdWallet’s 2026 overview describes 3.5% down at scores of 580 or higher and 10% at 500–579. | Lender overlays still apply. Include mortgage insurance, rate and fees when comparing the total cost. |
| VA | The Department of Veterans Affairs does not set a minimum credit score. Navy Federal says 620 is typical among lenders; Rocket Mortgage reports a 580 minimum for its own VA loans. | Check VA benefit eligibility, occupancy, lender requirements, debt and residual income, and any funding fee or exemption. VA loans commonly offer no down payment and no monthly mortgage insurance, subject to eligibility and other program costs. |
| USDA | Navy Federal describes no-down-payment loans and says lenders commonly look for a score around 640, with variation. | The property must meet location rules and household income must meet applicable limits. Confirm lender-specific score requirements. |
| Conventional | Navy Federal describes 620 or higher as typical; NerdWallet also describes 620 as usual while noting exceptions. | Requirements vary by lender and product. Ask how down payment, private mortgage insurance and other costs affect your specific offer. |
For VA, the VA’s lack of a score minimum does not mean every VA lender has no minimum. Rocket Mortgage’s 580 figure applies to Rocket’s own stated VA policy; Navy Federal’s 620 is a typical threshold it reports, not a universal VA rule. Likewise, a USDA score around 640 is guidance, not a program-wide guarantee.
How should you compare offers?
Compare several lenders using the same assumptions: purchase price, down payment, loan type, discount points and rate-lock period. A rate quote without its points, fees and loan terms can make one offer look cheaper than it is. Review these items side by side:
- Eligibility: Ask whether the published score is a program baseline or that lender’s own minimum, and confirm state availability and any program-specific rules.
- Borrowing cost: Compare the personalized interest rate and APR, discount points, origination charges, other closing costs, mortgage insurance and any VA funding fee. APR helps account for some costs, but inspect the itemized estimate too.
- Cash to close: Check the required down payment, estimated closing cash and reserves. Ask whether assistance is available and whether you meet its terms.
- Underwriting fit: Explain any thin credit file, past late payments, bankruptcy or foreclosure before assuming a score threshold tells the whole story. Ask what records the lender will need.
- Process and service: Consider how clearly the lender explains costs, who will handle the application, whether the property and loan fit its service area, and whether the proposed closing schedule works for you.
Request written Loan Estimates from multiple lenders for the same scenario, then compare the figures and loan terms rather than relying on a teaser rate or a general online calculator. A HUD-approved housing counselor can help you assess readiness and look into assistance options; counseling does not guarantee loan approval.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What else affects mortgage approval?
Credit is one part of underwriting. The reviewed sources identify debt-to-income ratio, stable documented income and employment, savings or reserves, down payment and payment history as relevant. VA lenders may also assess residual income. These factors can affect whether a lender approves an application even when the score meets its stated minimum.
Mortgage lenders commonly review credit-bureau scores. Navy Federal says lenders may use the middle score and, for co-borrowers, often the lower middle score. Exact score treatment varies with the lender and application, so ask how it will evaluate your borrowers’ credit rather than assuming a score shown by a credit-monitoring service is the one used for underwriting.
Quick Recap
Best Value
What to verify before applying
- Confirm the lender’s current minimum for your exact loan program and whether it has additional credit or underwriting requirements.
- For FHA, check the down payment applicable to your score range and include mortgage insurance in your cost comparison.
- For VA, confirm benefit eligibility, occupancy and lender criteria; ask about the funding fee or exemption.
- For USDA, check both property eligibility and household-income limits before relying on a lender’s score guidance.
- Get comparable written estimates and review rates, APRs, points, fees and cash to close together.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
