FAQ: Can I buy a home with less-than-perfect credit?

A common misconception among potential homebuyers is that you need perfect credit to qualify for a mortgage. The reality is that your credit score is just one part of the overall financial picture lenders consider.

Different loan programs have different credit requirements, and many buyers qualify for mortgages with credit scores that are lower than they expect. Lenders also evaluate factors such as your income, employment history, debt levels, down payment, and overall financial profile when determining your loan options.

Your credit score can influence the loan programs available to you and may impact your interest rate and terms, but a less-than-perfect score doesn’t automatically mean homeownership is out of reach.

The best first step is understanding your options based on your current situation. In some cases, buyers may be ready to move forward today. In others, a few strategic financial steps could help improve their position over time.

Your loan originator can help review your financial picture, explain what options may be available, and help you create a plan that aligns with your homeownership goals.