Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Think your credit is too low to get a mortgage? You might be closer to qualifying than you think. Many lenders accept lower scores on some of their mortgages.
Best mortgage lenders for low credit scores
Editor’s Rating
Carrington Flexible Advantage mortgage
Editor’s Rating
Editor’s Rating
580, may go lower with compensating factors
Editor’s Rating
Editor’s Rating
Editor’s Rating
Mortgages for self-employed borrowers
To find the best low credit score mortgage lenders, we looked for lenders that offer mortgages that allow scores below 620, including FHA mortgages, and have flexible credit requirements on one or more of their mortgage products.
Here are the best mortgage lenders for borrowers with low credit scores.
Carrington Mortgage Services FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Carrington Mortgage Services FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Pros & Cons
Highlights
Additional Reading
Carrington’s standout feature is its Carrington Flexible Advantage mortgage, which accepts borrowers who have recent negative credit events, such as a foreclosure or bankruptcy, on their credit reports. The minimum credit score for this mortgage is 550.
All of Carrington’s government-backed loan options, which include its FHA, USDA, and VA mortgages, allow credit scores as low as 500.
Carrington has an A+ rating from the BBB.
Best for those with no credit history: Guild Mortgage
Guild Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Guild Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Pros & Cons
Highlights
Additional Reading
Guild Mortgage is an affordable option for borrowers who have lower scores and those who don’t have one at all. If you don’t have an established traditional credit history, you can use things like your rent, utility, or car insurance payment history to prove your creditworthiness. Guild can also help connect you with down payment assistance programs in your county.
Guild mortgage has an A- rating from the BBB. It ranked above average in customer satisfaction on J.D. Power’s 2022 study of mortgage originators.
New American Funding FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
New American Funding FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
Pros & Cons
Highlights
Additional Reading
New American Funding is another affordable option for borrowers thanks to its variety of mortgage options and flexible credit requirements.
The minimum credit score for its FHA, VA, and USDA loans is 580, though borrowers may be able to go lower with compensating factors. This lender also accepts non-traditional credit (such as proof of rent or utility payments) from those who have no score.
Additionally, its I CAN mortgage lets borrowers choose any term length between eight and 30 years. However, you’ll need at least a 620 credit score to qualify for this mortgage.
New American Funding has an A+ rating from the BBB.
Best for an easy online experience: Rocket Mortgage
Rocket Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Rocket Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Pros & Cons
Highlights
Additional Reading
Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power in 2022. Rocket Mortgage offers a quick and easy online experience, with live online chat.
This lender requires a minimum credit score of 580 for its FHA and VA mortgages.
Rocket Mortgage has an A+ rating from the BBB.
Best for low down payments: Citibank
Citibank Mortgages FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Citibank Mortgages FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Pros & Cons
Highlights
Additional Reading
While many lenders offer mortgage options that allow 3% down payments, Citibank’s HomeRun mortgages allow 3% down with no mortgage insurance requirement, meaning you’ll save money each month on your mortgage payments. You can also use non-traditional credit to apply for one of these loans, though you’ll need to put at least 5% down if you plan to do so.
Citibank doesn’t list its minimum FHA score requirements online, but you may be able to get a mortgage with a score as low as 580 if your finances are otherwise in good shape, according to a loan officer who spoke with Insider.
Citibank has an F rating from the BBB due to unanswered and unresolved complaints and government action against the business.
Though this lender is rated poorly by the BBB, it earned the No. 3 spot in customer satisfaction on J.D. Power’s 2022 study.
CashCall Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
CashCall Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
Pros & Cons
Highlights
Additional Reading
CashCall Mortgage’s loans for self-employed borrowers, independent contractors, and commission-based earners offer an alternative to providing tax returns and W-2s.
Its bank statement loans let borrowers use their bank statements to document their income, while its 1099 earner loans accept 1099 forms as documentation, with no tax returns required. Both of these mortgages allow credit scores as low as 600.
CashCall Mortgage is the trade name for Impac Mortgage Corp., which has an A+ rating from the Better Business Bureau.
Other mortgage lenders we considered
- Guaranteed Rate: Those with no credit score may be able to get a mortgage with Guaranteed Rate using non-traditional credit. But it says you’ll need a “favorable credit score” to get an FHA mortgage.
- Wells Fargo: Though this lender offers a few different affordable mortgage options, it earned a below average customer satisfaction score from J.D. Power and has dealt with several controversies in recent years.
- Mr. Cooper: Mr. Cooper ranked low in customer satisfaction in J.D. Power’s 2022 study.
- Truist: You may be able to qualify using non-traditional credit with Truist. But it doesn’t have as many standout features as some of our other favorites.
- Freedom Mortgage: Freedom Mortgage received a low ranking in customer satisfaction from J.D. Power.
- LoanDepot: LoanDepot scored above the industry average in customer satisfaction in J.D. Power’s annual study, but it doesn’t have any flexible credit requirements.
- Flagstar Bank: This bank has an A+ from the BBB, but doesn’t have flexible credit requirements.
- Pennymac: PennyMac is another lender that ranked low in customer satisfaction in J.D. Power’s annual study.
- Paramount Bank: This bank offers FHA loans, but doesn’t show interest rates on its site.
- Regions: Regions offers FHA loans, but this bank only has branches in certain parts of the US.
Methodology: How we chose the best low credit score lenders for 2023
In choosing the best mortgage lenders for low credit scores, Personal Finance Insider looked for lenders that:
- Offer mortgages that allow scores below 620, including FHA mortgages.
- Have flexible credit requirements on one or more of their mortgage products — this could include accepting non-traditional forms of credit (such as proof of rent payments in lieu of a formal credit history) or considering borrowers who have negative events (such as a bankruptcy or foreclosure) on their credit reports.
FHA mortgages can be a great option for those with lower scores, but some lenders that offer these mortgages require higher scores than the minimum of 580 (or 500 with a 10% down payment). Some lenders, for example, require scores of 620 across the board, regardless of the specific loan type. All of the lenders on this list allow scores of 600 or lower on their FHA mortgages.
Many of the lenders we included also have their own specialty mortgage products that allow scores below 620, such as Carrington’s Flexible Advantage mortgage.
We also looked at the following:
- Customer satisfaction. If the lender appeared in the J.D. Power 2022 Mortgage Origination Satisfaction Study, we looked at its ranking. If it wasn’t in the survey, then we read online customer reviews.
- Ethics. Most our top picks received an A+ from the Better Business Bureau, which measures companies’ trustworthiness. The exceptions are Guild Mortgage, which has an A rating, and Citibank, which has an F. We also researched and considered any scandals in the past three years.
Rocket Mortgage is the only lender on our list that does not have flexible credit requirements. But we still included it because it thrives in other areas, like customer satisfaction.
Are these mortgage lenders trustworthy?
We have included each lender’s grade from the Better Business Bureau. The BBB evaluates businesses by looking at companies’ responses to customer complaints, transparency about business practices, and honesty in advertising.
Most of our top picks have an A+ from the BBB. The two exceptions are Guild Mortgage, which has a A rating, and Citibank, which has an F rating.
The BBB says that Guild Mortgage received a A- rating due to government action against the lender. In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
Citibank’s poor rating is due to unanswered and unresolved complaints and government action against the business, which involved Citibank’s failure to prevent the deletion of subpoenaed audio recordings due to a known issue with its audio preservation system. But the lender is strong in customer satisfaction and has good customer reviews on its Zillow profile.
In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.
Frequently asked questions
A credit score of 500 is generally the lowest score you could get a mortgage with, and you’ll need to find a lender that allows these types of mortgages. You’ll likely need a large down payment to get a mortgage with a score this low.
To have a larger selection of lenders to choose from, you’ll need a score of at least 620.
Yes, you may be able to get an FHA mortgage with a credit score as low as 500 — but you’ll need a 10% down payment. This is in contrast with getting an FHA mortgage with a 580 credit score and 3.5% down payment.
An FHA mortgage is usually the easiest home loan to get. You can qualify with a credit score as low as 580 (with a 3.5% down payment) or even 500 (with a 10% down payment). You can also usually qualify for an FHA mortgage with more debt than with a conforming mortgage.
These are general rules of thumb, but exact requirements will vary by mortgage lender.
Most lenders pull your credit score when you apply for mortgage preapproval. If you don’t have a credit score, you may have a hard time finding a bank that will lend to you.
But many of the lenders on our list allow alternative credit data, also known as non-traditional credit. You can show proof of paying bills like rent, utilities, and insurance on time, and this provides evidence that you are financially reliable even though you don’t have a traditional score.
Each lender has different requirements for alternative data. For example, a company may require proof of on-time rent payments dating back 12 months.
It depends on your situation. A poor credit score is sometimes a sign of larger financial issues — maybe your score is low because you don’t pay your bills on time or because you have a lot of debt. In these cases, adding another payment and form of debt by taking out a mortgage may not be a great idea.
Getting a mortgage with a low credit score can also be expensive. The lower your score, the higher your rate will be to compensate for the risk the lender is taking.
But if you feel confident that you can afford monthly payments and are working to improve your credit score, it may be a good time to buy a home.
Mortgage and refinance rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Think your credit is too low to get a mortgage? You might be closer to qualifying than you think. Many lenders accept lower scores on some of their mortgages.
Best mortgage lenders for low credit scores
Editor’s Rating
Carrington Flexible Advantage mortgage
Editor’s Rating
Editor’s Rating
580, may go lower with compensating factors
Editor’s Rating
Editor’s Rating
Editor’s Rating
Mortgages for self-employed borrowers
To find the best low credit score mortgage lenders, we looked for lenders that offer mortgages that allow scores below 620, including FHA mortgages, and have flexible credit requirements on one or more of their mortgage products.
Here are the best mortgage lenders for borrowers with low credit scores.
Carrington Mortgage Services FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Carrington Mortgage Services FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, USDA, VA, Carrington Flexible Advantage
Pros & Cons
Highlights
Additional Reading
Carrington’s standout feature is its Carrington Flexible Advantage mortgage, which accepts borrowers who have recent negative credit events, such as a foreclosure or bankruptcy, on their credit reports. The minimum credit score for this mortgage is 550.
All of Carrington’s government-backed loan options, which include its FHA, USDA, and VA mortgages, allow credit scores as low as 500.
Carrington has an A+ rating from the BBB.
Best for those with no credit history: Guild Mortgage
Guild Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Guild Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, USDA, VA, reverse, renovation, manufactured, bridge, energy-efficient, doctor, Complete Rate
Pros & Cons
Highlights
Additional Reading
Guild Mortgage is an affordable option for borrowers who have lower scores and those who don’t have one at all. If you don’t have an established traditional credit history, you can use things like your rent, utility, or car insurance payment history to prove your creditworthiness. Guild can also help connect you with down payment assistance programs in your county.
Guild mortgage has an A- rating from the BBB. It ranked above average in customer satisfaction on J.D. Power’s 2022 study of mortgage originators.
New American Funding FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
New American Funding FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, USDA, reverse, buydown loan, I CAN mortgage,
Pros & Cons
Highlights
Additional Reading
New American Funding is another affordable option for borrowers thanks to its variety of mortgage options and flexible credit requirements.
The minimum credit score for its FHA, VA, and USDA loans is 580, though borrowers may be able to go lower with compensating factors. This lender also accepts non-traditional credit (such as proof of rent or utility payments) from those who have no score.
Additionally, its I CAN mortgage lets borrowers choose any term length between eight and 30 years. However, you’ll need at least a 620 credit score to qualify for this mortgage.
New American Funding has an A+ rating from the BBB.
Best for an easy online experience: Rocket Mortgage
Rocket Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Rocket Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA
Pros & Cons
Highlights
Additional Reading
Rocket Mortgage ranked as the top lender for customer satisfaction from J.D. Power in 2022. Rocket Mortgage offers a quick and easy online experience, with live online chat.
This lender requires a minimum credit score of 580 for its FHA and VA mortgages.
Rocket Mortgage has an A+ rating from the BBB.
Best for low down payments: Citibank
Citibank Mortgages FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Citibank Mortgages FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, jumbo, FHA, VA, HomeRun mortgage
Pros & Cons
Highlights
Additional Reading
While many lenders offer mortgage options that allow 3% down payments, Citibank’s HomeRun mortgages allow 3% down with no mortgage insurance requirement, meaning you’ll save money each month on your mortgage payments. You can also use non-traditional credit to apply for one of these loans, though you’ll need to put at least 5% down if you plan to do so.
Citibank doesn’t list its minimum FHA score requirements online, but you may be able to get a mortgage with a score as low as 580 if your finances are otherwise in good shape, according to a loan officer who spoke with Insider.
Citibank has an F rating from the BBB due to unanswered and unresolved complaints and government action against the business.
Though this lender is rated poorly by the BBB, it earned the No. 3 spot in customer satisfaction on J.D. Power’s 2022 study.
CashCall Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
CashCall Mortgage FHA mortgage
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
Details
Minimum Down Payment
3.5%
Types of Loans Offered
Conforming, FHA, VA, jumbo, bank statement program, 1099 earner program, investment property
Pros & Cons
Highlights
Additional Reading
CashCall Mortgage’s loans for self-employed borrowers, independent contractors, and commission-based earners offer an alternative to providing tax returns and W-2s.
Its bank statement loans let borrowers use their bank statements to document their income, while its 1099 earner loans accept 1099 forms as documentation, with no tax returns required. Both of these mortgages allow credit scores as low as 600.
CashCall Mortgage is the trade name for Impac Mortgage Corp., which has an A+ rating from the Better Business Bureau.
Other mortgage lenders we considered
- Guaranteed Rate: Those with no credit score may be able to get a mortgage with Guaranteed Rate using non-traditional credit. But it says you’ll need a “favorable credit score” to get an FHA mortgage.
- Wells Fargo: Though this lender offers a few different affordable mortgage options, it earned a below average customer satisfaction score from J.D. Power and has dealt with several controversies in recent years.
- Mr. Cooper: Mr. Cooper ranked low in customer satisfaction in J.D. Power’s 2022 study.
- Truist: You may be able to qualify using non-traditional credit with Truist. But it doesn’t have as many standout features as some of our other favorites.
- Freedom Mortgage: Freedom Mortgage received a low ranking in customer satisfaction from J.D. Power.
- LoanDepot: LoanDepot scored above the industry average in customer satisfaction in J.D. Power’s annual study, but it doesn’t have any flexible credit requirements.
- Flagstar Bank: This bank has an A+ from the BBB, but doesn’t have flexible credit requirements.
- Pennymac: PennyMac is another lender that ranked low in customer satisfaction in J.D. Power’s annual study.
- Paramount Bank: This bank offers FHA loans, but doesn’t show interest rates on its site.
- Regions: Regions offers FHA loans, but this bank only has branches in certain parts of the US.
Methodology: How we chose the best low credit score lenders for 2023
In choosing the best mortgage lenders for low credit scores, Personal Finance Insider looked for lenders that:
- Offer mortgages that allow scores below 620, including FHA mortgages.
- Have flexible credit requirements on one or more of their mortgage products — this could include accepting non-traditional forms of credit (such as proof of rent payments in lieu of a formal credit history) or considering borrowers who have negative events (such as a bankruptcy or foreclosure) on their credit reports.
FHA mortgages can be a great option for those with lower scores, but some lenders that offer these mortgages require higher scores than the minimum of 580 (or 500 with a 10% down payment). Some lenders, for example, require scores of 620 across the board, regardless of the specific loan type. All of the lenders on this list allow scores of 600 or lower on their FHA mortgages.
Many of the lenders we included also have their own specialty mortgage products that allow scores below 620, such as Carrington’s Flexible Advantage mortgage.
We also looked at the following:
- Customer satisfaction. If the lender appeared in the J.D. Power 2022 Mortgage Origination Satisfaction Study, we looked at its ranking. If it wasn’t in the survey, then we read online customer reviews.
- Ethics. Most our top picks received an A+ from the Better Business Bureau, which measures companies’ trustworthiness. The exceptions are Guild Mortgage, which has an A rating, and Citibank, which has an F. We also researched and considered any scandals in the past three years.
Rocket Mortgage is the only lender on our list that does not have flexible credit requirements. But we still included it because it thrives in other areas, like customer satisfaction.
Are these mortgage lenders trustworthy?
We have included each lender’s grade from the Better Business Bureau. The BBB evaluates businesses by looking at companies’ responses to customer complaints, transparency about business practices, and honesty in advertising.
Most of our top picks have an A+ from the BBB. The two exceptions are Guild Mortgage, which has a A rating, and Citibank, which has an F rating.
The BBB says that Guild Mortgage received a A- rating due to government action against the lender. In 2020, Guild Mortgage paid the United States $24.9 million when it was accused of approving FHA mortgages for people who didn’t qualify, resulting in loan defaults.
Citibank’s poor rating is due to unanswered and unresolved complaints and government action against the business, which involved Citibank’s failure to prevent the deletion of subpoenaed audio recordings due to a known issue with its audio preservation system. But the lender is strong in customer satisfaction and has good customer reviews on its Zillow profile.
In 2019, the US Justice Department required Rocket Mortgage’s parent company Quicken Loans to pay $32.5 million for alleged mortgage fraud. The Justice Department claimed Quicken Loans approved mortgage applications it shouldn’t have. Although Quicken Loans paid the settlement, the company never admitted to mortgage fraud.
Frequently asked questions
A credit score of 500 is generally the lowest score you could get a mortgage with, and you’ll need to find a lender that allows these types of mortgages. You’ll likely need a large down payment to get a mortgage with a score this low.
To have a larger selection of lenders to choose from, you’ll need a score of at least 620.
Yes, you may be able to get an FHA mortgage with a credit score as low as 500 — but you’ll need a 10% down payment. This is in contrast with getting an FHA mortgage with a 580 credit score and 3.5% down payment.
An FHA mortgage is usually the easiest home loan to get. You can qualify with a credit score as low as 580 (with a 3.5% down payment) or even 500 (with a 10% down payment). You can also usually qualify for an FHA mortgage with more debt than with a conforming mortgage.
These are general rules of thumb, but exact requirements will vary by mortgage lender.
Most lenders pull your credit score when you apply for mortgage preapproval. If you don’t have a credit score, you may have a hard time finding a bank that will lend to you.
But many of the lenders on our list allow alternative credit data, also known as non-traditional credit. You can show proof of paying bills like rent, utilities, and insurance on time, and this provides evidence that you are financially reliable even though you don’t have a traditional score.
Each lender has different requirements for alternative data. For example, a company may require proof of on-time rent payments dating back 12 months.
It depends on your situation. A poor credit score is sometimes a sign of larger financial issues — maybe your score is low because you don’t pay your bills on time or because you have a lot of debt. In these cases, adding another payment and form of debt by taking out a mortgage may not be a great idea.
Getting a mortgage with a low credit score can also be expensive. The lower your score, the higher your rate will be to compensate for the risk the lender is taking.
But if you feel confident that you can afford monthly payments and are working to improve your credit score, it may be a good time to buy a home.
Mortgage and refinance rates by state
Check the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming