There are different options available to qualify for a home loan even if your credit score is low. Here's our list:
1. FHA (Federal Housing Administration) loans help home buyers secure mortgages even if their credit isn't great.
Potential home buyers can qualify for an FHA loan even with a credit score as low as 580.
2. VA loans issued by the Department of Veterans Affairs are available to active-duty military members and veterans.
All you need is a credit score of 620 or higher to qualify for a Department of Veterans Affairs loan.
3. USDA loans, from the US Department of Agriculture, are for lower-income borrowers to buy homes in rural areas.
If you need a USDA loan under this program, all you need is a credit score of 640 or above to qualify.
4. Fannie Mae HomeReady loans are for low-income borrowers. You'll need a credit score of 620 or above to qualify.
5. Freddie Mac Home Possible loans are accessible to first-time home buyers with moderate incomes.