Think buying a home is off the table because your credit isn’t stellar? Think again. While a high credit score certainly helps when applying for a mortgage, having less-than-perfect credit doesn’t mean you have to give up on your dream of homeownership. In today’s lending environment, there are still real possibilities for buyers with imperfect credit—especially if you're willing to prepare, explore options, and work with the right professionals.

Here’s what’s possible right now if your credit isn’t spotless.

1. FHA Loans: A Flexible Option for Lower Credit Scores

One of the most accessible routes for buyers with poor or fair credit is the FHA loan. Backed by the Federal Housing Administration, these loans are designed to help first-time and lower-income buyers get into homes with more lenient requirements. With an FHA loan, you can qualify with a credit score as low as 580—and even lower in some cases with a larger down payment.

These loans also allow for smaller down payments (as little as 3.5%), and they’re more forgiving of past financial missteps like a bankruptcy or foreclosure, as long as you’ve re-established credit and met certain time requirements.

2. Explore Other Government-Backed Loans

Beyond FHA loans, programs like VA loans (for eligible veterans, active-duty service members, and certain spouses) and USDA loans (for rural or suburban homebuyers) offer flexible terms and often require no down payment. While these programs still look at credit history, their underwriting is typically more understanding of past credit issues than conventional loans.

3. Shop Around for Lenders Who Work with Low Credit

Not all lenders have the same requirements. Some specialize in helping borrowers with less-than-perfect credit. It's important to shop around and get multiple quotes—this could mean the difference between an approval and a rejection or between a high and more manageable interest rate. Consider working with a mortgage broker who can connect you with lenders more likely to work with your situation.

4. Expect to Pay More in Interest—but Plan to Refinance Later

Let’s be real: having a lower credit score usually means a higher interest rate. That said, if homeownership is important to you now, you might choose to buy with a higher rate and plan to refinance later, once your credit improves. This strategy lets you get in the market, build equity, and eventually secure better loan terms down the road.

5. Strengthen Your Application in Other Ways

Even with imperfect credit, you can improve your mortgage chances by showing stability in other areas. A steady job, consistent income, strong rental history, and larger down payment can all help strengthen your application. Paying down existing debts or getting a co-signer (if appropriate) may also improve your chances of approval.

Discover: 5 Steps to Get Mortgage-Ready (Even If You’re Worried You Won’t Qualify)

Final Thought

Bad credit doesn’t have to be the end of your homeownership story. With the right loan program, preparation, and support, buying a home is still within reach. While the process might take a bit more patience and creativity, many buyers with less-than-perfect credit are getting keys in hand right now—and you can too.