Many lenders accept low or bad credit scores, making homeownership possible for many. Carrington Mortgage Services stands out for its flexible requirements, accepting scores as low as 500 for FHA and VA loans. Guild Mortgage is ideal for those with no credit history, offering alternative credit data options. New American Funding provides a variety of loans, including the unique I CAN mortgage. Rocket Mortgage excels in an easy online experience, while CrossCountry Mortgage has no minimum credit score, accommodating non-traditional credit. However, expect higher interest rates and larger down payments with poor credit. For those with recent negative credit events, options include FHA, VA, and USDA loans, or exploring non-QM loans and alternative financing like owner financing or rent-to-own. Improving credit, saving for a larger down payment, and credit counseling can boost chances before applying. It's crucial to avoid predatory lenders and watch out for high costs, risky features, and high-pressure sales tactics.
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