Can You Buy a Home With a Low Credit Score?
By Susan Nevel, REALTOR · AZ & Associates
Every week, I meet people who believe they cannot buy a home because of their credit score. Many have been turned away by other realtors or lenders who told them they do not qualify. The truth is, there are more options than most people realize.
FHA Loans: Your Credit Score Is Not a Dealbreaker
FHA loans, backed by the Federal Housing Insurance Administration, allow buyers to purchase a home with a credit score as low as 580 with just 3.5% down. Even buyers with scores between 500 and 579 may qualify with a 10% down payment.
FHA loans are one of the most popular options for first-time buyers and buyers with less-than-perfect credit. They are designed to make homeownership accessible.
VA Loans for Military Members
If you are an active-duty service member or veteran, VA loans do not have a minimum credit score requirement set by the VA itself. Individual lenders may have their own requirements, but many will work with scores as low as 580-620.
What If My Score Needs Work?
Sometimes the best move is to spend a few months improving your credit before applying. Here are some quick wins:
- Pay down credit card balances below 30% of your limit
- Do not open new credit accounts
- Dispute any errors on your credit report
- Make all payments on time, every time
- Becoming an authorized user on a family member's credit card can help boost your score
The Story I See Every Day
I had a client who came to me after being told by multiple agents that she could never buy a home because of her credit. Together with my lending partners, we found a path forward. She is now a proud homeowner. Your credit score does not define your future.
If you have been told you cannot buy a home because of your credit, please reach out. I am here for you, and I want to help. Contact me or call or text me at (623) 640-8840 anytime.