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.
🏆 Our top pick for 2026: Real Genius
Real Genius is NerdWallet's pick for the best mortgage lender for borrowers with low or bad credit in 2026. We were especially impressed with their online rate tool, which makes it easy to understand how your credit score affects your mortgage rate.
The research: What we looked at, beyond credit scores
For starters, yes — every lender on this list accepts credit scores of 600 or lower. We confirmed that with the lender or found it on its website. (Again, your approval odds will depend on the rest of your financial situation.)
But a low credit score requirement alone didn’t earn a lender a spot on this list. We wanted to see how lenders show up for borrowers whose credit isn’t perfect — with flexible loan options, creative programs or help with the upfront costs of buying a home.
Here’s the other stuff we looked for when evaluating our picks:
FHA loans: Every lender here offers FHA loans, and there’s an important reason why. These government-backed loans tend to be more forgiving of lower credit scores. You may be able to qualify with a score as low as 500 if you can put 10% down. If you have bad credit, an FHA loan is likely your first — or only — option. VA loans: We also looked for lenders that offer VA loans, even if fewer borrowers are eligible for them. VA loans are for military borrowers, veterans and surviving spouses. If you do qualify, they can be one of the most affordable ways to buy a home. Help with upfront costs: We also highlighted programs that can help with your down payment, closing costs or other big expenses that can get in the way of buying a home. These programs didn’t affect a lender’s rating, but they could make a real difference to your budget.
Why does bad credit mean a higher mortgage rate?
A low credit score can signal to lenders that you’re more likely to miss a payment on your loan. To offset that risk, they typically charge a higher rate and more fees. And ugh, I know, paying more money each month is a bummer when mortgage rates are already on the high side right now. When every dollar matters, don’t stop at the first lender who says yes. Get quotes from a few lenders, then compare the rate, fees and monthly payment. Our guide to choosing a mortgage lender is a good place to start. You can also work with a mortgage broker to do the shopping around for you. Common options for low credit home loans
Government-backed mortgage programs often have the most flexible credit requirements. Here’s a quick overview:
Type of loan | Backed by | Focus | Minimum down payment |
|---|
| Federal Housing Administration | All home buyers | 3.5% (with a credit score 580+) 10% (with a credit score 500-579) |
| Department of Veterans Affairs | Active military and veterans | 0% |
| U.S. Department of Agriculture | Mostly rural areas | 0% |
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.
Behind our picks: Why each lender earned a spot on this list
Over the past four years at NerdWallet, I’ve written about mortgages for people with low credit scores. I’ve learned that a lender saying “yes” to a lower score is only the starting point.
The best lenders go further, with flexible rules and loan options designed for people rebuilding their credit. Here’s what stands out for each of the lenders on our list.
Flagstar: Helpful assistance programs, if you’re already a banking customer
So, let’s assume you already bank with Flagstar, since the company announced that its mortgage business will focus on existing customers for the time being. Flagstar accepts credit scores as low as 580. To help stretch your budget, look into the Destination Home mortgage (a no-down-payment option, for scores 600+) or the Flagstar Gift Program, which offers up to $15,000 in a short list of states.
PNC Bank: A good balance of IRL service and digital tools
I’ll probably lose millennial points for saying this, but sometimes I prefer physically going somewhere to talk to a real person instead of tapping on a screen at home. With a large branch network and online mortgage rate quote tool, PNC offers both options. If your finances are complicated — say, you’re recovering from credit challenges — IRL service can be especially helpful.
Real Genius, our 2026 "Best Of" winner: Maybe the most helpful online rate tool I’ve ever seen
In my job, I’ve tested a lot of online mortgage rate tools. It can be a snoozefest. Real Genius makes getting a mortgage rate kind of … fun? You can see how changes in your credit score actually affect your APR and monthly payment — super helpful if you’re figuring out whether to apply now or give your credit a little more time.
Network Capital offers a long list of harder-to-find mortgage options, including ITIN, non-QM and self-employed loans — all strong options if your finances don’t fit into a predictable little box. Their average closing time is pretty fast, too, at only 20 days. But be aware that if you have credit blemishes like bankruptcy or missed payments, your closing timeline could be longer as the lender asks for additional documentation.
Carrington: A flexible option after a credit setback
Carrington specializes in serving borrowers who may have a harder time qualifying elsewhere, including people with past bankruptcies, foreclosures or other credit challenges. Its non-QM loans, like the Flexible Advantage series, offer more flexibility than traditional mortgages. The lender’s website spells out exactly what kind of common credit hiccups are OK — including late mortgage payments, short sales, or missed credit card payments.
Rate: A fast-moving lender for borrowers with scores in the 500s
Rate may accept credit scores as low as 580, but that’s only part of the appeal. With Rate, qualified borrowers can get fully underwritten approval in as little as one business day. (If your financial situation is more complex, expect underwriting to take more time.) We also like that Rate offers ITIN loans, a specialty type of loan for people who aren’t eligible for social security numbers.
Guild: A major FHA lender with room for different financial situations
If your credit score isn’t perfect, Guild may be worth a closer look. It accepts FHA borrowers with scores as low as 540 and is a major FHA lender by volume, so it has plenty of experience with this popular low-credit loan type. Guild also offers other ways to qualify if your income doesn’t fit the usual paycheck-to-W-2 mold, including bank statement loans, 1099 loans and profit-and-loss loans.
Lower: A fast FHA option for buyers with scores in the 500s
A minimum score requirement of 500 is just about the lowest I’ve seen among mortgage lenders, and Lower is one of them. Lower accepts FHA borrowers with credit scores as low as 500, and FHA loans make up a big part of its business. That tells me this isn’t a side offering — it’s a loan type the lender works with often. Lower also has specialty loans for fixer-uppers and options for self-employed borrowers.
Besides FHA loans, New American offers non-QM loans for borrowers who don’t fit every traditional lending rule. That’s a good sign a lender won’t shy away from tricky financial situations (like a credit hiccup) and are willing to work through the complicated stuff. First-time buyers who qualify may get up to $9,000 for a down payment or closing costs, too — no repayment required — and you can stack it with other assistance funds.
CrossCountry is a major FHA lender with a 500 minimum credit score for FHA loans, and its variety of FHA purchase and refinance options are pretty extensive. We also like its Smart Start down payment assistance program and Community Promise closing-cost assistance, which can help lower-income buyers get across the finish line. But CrossCountry doesn’t post mortgage rates online, so you’ll need to get a quote to compare costs with other lenders.
Movement Mortgage is a major FHA lender, but we were especially drawn to its Movement Boost program for FHA loans. The program helps fund your 3.5% down payment and potentially some closing costs, too. The lender says the program has no income limits — helpful if your credit needs work and your savings are stretched, too. (It’s a loan, so you will eventually have to pay the money back.) Your score needs to be out of the 500’s, though — Movement Boost requires at least a 600 FICO to qualify.
LoanDepot: A low-score option with a wide menu of loans
LoanDepot may accept credit scores as low as 520, which is one of the lowest minimums among lenders we review. If you have credit struggles, that flexibility alone makes it worth a look. But LoanDepot stands out for other reasons, including the niche FHA 203(k) renovation loan for fixer-uppers, and its AccessZERO down payment assistance and AccessONE grant programs.
Newrez: A lender that looks beyond the usual checklist
If you’re self-employed or have had credit trouble, Newrez may have more options for you. It offers non-QM loans that can work for people who don’t fit the usual lending rules. About half of its recent loans were FHA, VA or USDA loans, so it has experience with government-backed mortgages. Scores as low as 500 are considered here. Down payment assistance is available, too. But shop around, since Newrez doesn’t show sample rates online.
Cardinal is a worthwhile option if you’re using FHA financing to buy a home that needs work … or if your credit is the thing that needs work. Its stated minimum credit score is 580, and eligible first-time buyers can explore closing-cost grants and other assistance programs. FHA loans, including the FHA 203(k) for fixer-uppers, make up a large portion of its business.
