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The home-buying process is notoriously stressful and often confusing, especially if you’re worried that having less than ideal credit will essentially disqualify you from participating. Fortunately, some lenders will still consider applicants with lower credit scores, typically if they’re around the 580 mark.
Select rounded up several such lenders — all of which will consider applicants with credit scores lower than the typical 620 requirement — and evaluated each lender based on the types of loans offered, customer support and the required minimum down payment amount, among other factors (see our methodology below.)
Remember that it’s important to do your homework so you can choose the best mortgage lender to suit your needs, whether you’re a first-time homebuyer or purchasing an investment property. While we’ve included a FAQ section below to help you get acquainted with some aspects of the process, if you have more specific questions, reach out to a representative or an advisor at your desired lender.
Also keep in mind that while you may be approved for a mortgage with a low credit score, you’ll likely receive an interest rate that’s on the higher end of the lender’s rate range.
Select’s picks for the best mortgage lenders for bad credit
Best for flexible terms
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA loans and Jumbo loans
8 – 29 years, including 15-year and 30-year terms
Typically requires a 620 credit score but will consider applicants with a 580 credit score as long as other eligibility criteria are met
Minimum down payment
3.5% if moving forward with an FHA loan
- Can use the loan to buy or refinance a single-family home, second …….