Buying a home is an exciting milestone, but it can be intimidating—especially if you have a low credit score. The good news is, you can still qualify for a mortgage! Many mortgage lenders in 2025 are willing to work with borrowers who have less-than-perfect credit, offering options tailored to your financial situation.
Whether you’re a first-time buyer, looking to refinance, or purchasing an investment property, this guide highlights some of the best mortgage lenders for low credit scores in 2025. We’ll help you navigate the process and find the right lender for you.
What is Considered a Low Credit Score for a Mortgage?
A credit score is a number that reflects your creditworthiness, which mortgage lenders use to assess the risk of lending you money. The higher your credit score, the better your loan terms will be. Here’s how credit scores are typically classified:
- Excellent: 750 and above
- Good: 700 to 749
- Fair: 650 to 699
- Poor: 649 and below
For low credit scores, you’ll likely face higher interest rates or less favorable loan terms, but that doesn’t mean homeownership is out of reach. Many home mortgage lenders are still willing to approve loans for those with low credit scores, particularly through specific loan programs designed to help borrowers in this situation.
Best Mortgage Lenders for Low Credit Scores in 2025
Here are some of the top mortgage lenders that offer programs specifically designed for individuals with low credit scores in 2025.
1. Rocket Mortgage by Quicken Loans
Rocket Mortgage, powered by Quicken Loans, is one of the most well-known names in the mortgage industry, particularly for those with low credit scores. They provide an easy-to-use online platform, allowing you to apply for a mortgage with just a few simple clicks.
- Key Features:
- Offers FHA loans, which are ideal for those with credit scores as low as 580
- Flexible down payment options
- Easy-to-use digital application process
Why Choose Rocket Mortgage?
Rocket Mortgage makes the process simple and fast. They also provide expert support throughout the process, ensuring you understand each step.
2. New American Funding
New American Funding is a great choice for those with low credit scores who need a personalized approach. They offer a variety of loan programs, including FHA loans, which are specifically designed for borrowers with credit challenges.
- Key Features:
- Offers FHA, VA, and Conventional loans
- Flexible eligibility requirements for people with lower credit scores
- Great customer service and advice throughout the loan process
Why Choose New American Funding?
New American Funding is known for its flexibility and willingness to work with individuals who have had credit issues. They are committed to finding the best solution for each customer.
3. Carrington Mortgage Services
Carrington Mortgage Services is known for helping people with low credit scores get approved for a mortgage. They offer FHA loans, VA loans, and Conventional loans, making them a great option for a variety of buyers.
- Key Features:
- Specializes in subprime loans, which are ideal for low-credit borrowers
- Offers flexible down payment options
- A broad selection of loan products, including FHA loans and VA loans
Why Choose Carrington Mortgage Services?
Carrington is a strong choice for people who may not qualify for traditional loans. They offer a range of options for borrowers with credit scores below 640, which is common among those seeking subprime mortgages.
4. Veterans United Home Loans
If you’re a veteran or active military member, Veterans United Home Loans is an excellent option. They specialize in VA loans, which are known for their lenient credit score requirements and lack of a down payment.
- Key Features:
- No down payment for eligible veterans
- Credit score requirements are more flexible than conventional loans
- Dedicated support for military families throughout the loan process
Why Choose Veterans United Home Loans?
Veterans United is a top choice for military members and their families, offering affordable VA loans with competitive rates and lower credit score requirements.
5. Fairway Independent Mortgage Corporation
Fairway Independent Mortgage is another mortgage lender that offers excellent options for people with low credit scores. They provide a wide range of loan products, including FHA, VA, and USDA loans, which all have flexible eligibility requirements.
- Key Features:
- Various loan options, including FHA, VA, and USDA loans
- High customer satisfaction ratings and personalized service
- Competitive rates for borrowers with credit challenges
Why Choose Fairway Independent Mortgage?
Fairway is known for its excellent customer service and ability to work with borrowers who have lower credit scores. They’ll guide you through the process and find the right loan for your needs.
What to Look for in a Mortgage Lender for Low Credit Scores
When shopping around for a mortgage lender, it’s important to keep these factors in mind:
- Loan Options: Ensure the lender offers government-backed loans like FHA loans, which are specifically designed for people with lower credit scores.
- Customer Service: Look for a lender that will provide personalized service and clear communication throughout the process.
- Rates and Fees: While you may not get the lowest rates, compare lenders to find the most competitive offers available to you.
- Flexible Qualification Requirements: Choose lenders that are known for working with borrowers with low credit scores and offering flexible qualification criteria.
Improving Your Chances with Low Credit
While it’s entirely possible to get a mortgage with a low credit score, improving your credit score even slightly can help you secure better terms. Here are some tips to boost your credit before applying for a mortgage:
- Pay Down Debt: Reducing your overall debt can improve your credit score.
- Fix Credit Report Errors: Make sure there are no inaccuracies in your credit report that are dragging your score down.
- Saving for a bigger down payment: can improve your chances of approval, even with a lower credit score.
Conclusion
Securing a mortgage with a low credit score in 2025 is absolutely possible. By choosing the right mortgage lender, you can still achieve your homeownership goals despite credit challenges. Companies like Quicken Loans, New American Funding, and Carrington Mortgage Services are among the top choices for borrowers with low credit scores, offering flexibility and support throughout the process.
Take the time to research your options, compare rates, and find a lender that’s a good fit for your needs. Homeownership is within your reach, even with less-than-perfect credit!
FAQS:
1. Can I get a mortgage with a low credit score?
Yes, you can get a mortgage with a low credit score, especially with FHA loans, VA loans, or subprime loans, though terms may not be as favorable.
2. What is considered a low credit score for a mortgage?
A credit score below 640 is typically considered low, but FHA loans can approve scores as low as 580.
3. What types of loans are available for people with low credit scores?
FHA loans, VA loans, and subprime loans are ideal for those with low credit scores, offering more flexible qualifications.
4. How can I improve my chances of getting a mortgage with a low credit score?
Paying down debt, saving for a larger down payment, and checking your credit report for errors can improve your chances.
5. Are there any mortgage lenders that specialize in low credit score loans?
Yes, lenders like Rocket Mortgage, New American Funding, and Carrington Mortgage Services specialize in working with low credit score borrowers.