The home buying process can be a stressful process especially if you currently own less than an ideal credit score .Fortunately, there are some best mortgage lenders for low credit score in 2024 that can lend you loans with credit score as low as 58. The mortgage lenders often given the option of FHA loans for all with low credit and credit-challenged borrowers. As the credit score is the key indication that tells you the lender the likelihood to return the loan , so the high credit sends the right signal to the borrowers.
 The best mortgage lenders for low credit score considers more than credit score when evaluating the mortgage application . If you currently have bad credit score then there are more chances that the mortgage lender will demand a higher down payment, high interest or require some additional payment. In brief you end up buying more on the home loan.
 If you have currently bad credit score than no worries , we can make it easier to find the mortgage lenders with products that might fit your situation well. Here’s the guide on best mortgage lenders for low credit score.
Table of Contents
Best Mortgage Lenders for low credit score in 2024
- Â New American Funding –Â Best overall mortgage lender for low credit score for variety of loan options
- Rocket Mortgage- Great bad credit mortgage lender for flexible terms
- Carrington Mortgage Services – Best low credit loan services for FHA
- Guild Mortgage – Great mortgage lender for those with no credit history
- Guaranteed Rate – Best option for all the first-time home buyers
-  Flagstar – Great mortgage lending option with wide range of loaning options
- Fairway Independent Mortgage – Great low credit score mortgage lender for customer satisfaction
Charting the Best Mortgage Lenders for low credit score in 2024
| Mortgage Lender | Best For | Minimum Credit Score | Minimum Down Payment |
| New American Funding | Overall home loaning | 580 | 3.5% |
| Rocket Mortgage | Flexible Terms | 580 | 3.5% |
| Carrington Mortgage Services | Low Credit Score | 500 | 10% |
| Guild Mortgage | First-Time Homebuyers | 620 | 3.5% |
| Guaranteed Rate | First-Time Homebuyers | 580 | 3.5% |
| Flagstar | Overall Mortgage Lending | 580 | 3.5% |
| Fairway Independent Mortgage | Customer Satisfaction | 580 | 3.5% |
New American Funding
| Minimum credit score required | 500 |
| Minimum down payment | 3.5% |
| Loans Offered |  Conforming, Jumbo , FHA, VA, USDA , reverse mortgage options |
 Product details of the no #1 Best Mortgage Lenders for low credit score in 2024
- New American Funding offers mortgages in all US states except Hawaii and New York
- The branches are available in 32 US States
-  The minimum credit score and the down payment are solely available for FHA loans. If you have credit score below the range of 580, you will need to make at least 10% down payment
This mortgage lender is the top pick for best mortgage lenders for low credit scores and offers a broad array of loan choices. It offers lenders the option for low down payment along with both phone and in branch support . Moreover, if you want to tap into the equity for big expense then New American offers cash out refinancing and reverse mortgages.
| Pros | Cons |
|  Various home loan options that include buydown loan or I CAN loan | Does not offer HELOC or other construction loans |
| Â You can apply with non-traditional forms of credit if you have no credit score | |
| Able to receive mortgage with credit score as low as 580 |
Rocket Mortgage
| Minimum credit score required | 580 |
| Minimum down payment | 3.0% |
| Loans Offered | Conforming, Jumbo , FHA, VA |
Product details of the no #2 Best Mortgage Lenders for low credit score in 2024
- Rocket Mortgage provides best mortgage loan for low credit score in all 50 US states but there are no physical branches for assistance
-  The displayed credit score requirement is only applicable on FHA mortgages
Rocket Mortgage is currently one of the most credible mortgage lenders in the Us . While the minimum credit score requirement for the majority of the lenders is 620, it offers mortgages with credit score 580. Being a great option in the list of best mortgage lenders for low credit score, it offers free program named Fresh Start to help potential applicants boost their credit scores. Although the high interest charges are applicable which puts a strain on the wallet.
| Pros | Cons |
| Users can get prequalified in a matter of minutes |  Runs hard inquiry to get personalized interest rates as per your financial standing |
| Loans can be used to refinance a single-family home, second home or investment property | Does not offer HELOC, construction loans and USDA loans. |
| The Rocket Mortgage app provides easy access |
Carrington Mortgage Services
| Minimum credit score required | 500 |
| Minimum down payment | 3.5% |
| Loans Offered | Conforming, FHA, VA, USDA , Carrington Flexible Advantage |
Product details of the no #3 Best Mortgage Lenders for low credit score in 2024
- Carrington Mortgage Services offers mortgage in all the US states only with the exception of Massachusetts and North Dakota
- If your minimum credit score is 580 then for FHA loan you have to make a down payment of 10%.
For all those who are interested in government loan products, there is no other better choice than the Carrington Mortgage Services. The good aspect is that even for people with low minimum credit score requirements and recent negative events, the mortgage lender accepts the application. However the lender has also penalized the misleading customers on mortgage payment relief during the COVID. Even being one of the best mortgage lenders for low credit score, it offers a standard mix of conventional purchase and refinance loans for an affordable path to home ownership.
| Pros | Cons |
| Â Offers various mortgage options for low score loan borrowers | Â Does not offer home equity line of credit |
|  This mortgage lender loan will consider borrowers who have been in bankruptcy, short sale, or late payments | No personalized interest rates are available online |
| Â Can easily view customized rates of buying home and apply online |
Guild Mortgage
| Minimum credit score required | 540 |
| Minimum down payment | 3.5% |
| Loans Offered |  Conforming, FHA, VA, USDA , Jumbo , reverse mortgage , renovation , manufactured , bridge , energy efficient |
Product details of the no #4 Best Mortgage Lenders for low credit score in 2024
- It offers mortgages in multiple US states except the New jersey and New York
-  This mortgage lender has branches in the 32 US states
-  The minimum credit score is applicable for the FHA mortgages with a down payment of 10% if the credit score is below 580
Guild Mortgage is a good option for all the home borrowers who value customer service along with low down payment on loans. Being the great option in the list of best mortgage lenders for low credit score, it offers generation selection of the loaning programs to facilitate a large user base. This one is specially known for government-backed mortgages that is ideal for all the first time home buyers . Other than that the home buyers that don’t possess a social security number can get loans of upto $1.25 million.
| Pros | Cons |
| Can easily apply for alternative credit data if you don’t have credit score |  Charges origination , funding and wire transfer fees |
| Has retail branches in most of the U.S states |  Does not offer construction or home equity line of credit |
| Hybrid digital closing options with faster closing appointment |
Guaranteed Rate
| Minimum credit score required | 580 |
| Minimum down payment | 3.5% |
| Loans Offered | Adjustable , FHA, VA, USDA , Jumbo , Fixed , Purchase , Refinance |
Product details of the no #5 Best Mortgage Lenders for low credit score in 2024
- Guaranteed Rate Provide the best mortgage loan for low credit score in all 50 U.S states
- This mortgage lender has branches in 47 US states
-  The minimum credit score requirement of 580 is for FHA loans solely but with a greater down payment
This mortgage lender is good for all the borrowers who are seeking for multiple loaning options for the users. The renovation , government backed loans along with home equity line of credit received high customer satisfaction . Being one of the viable option in the list of best mortgage lenders for low credit score it provides HELOC fund in as little as 5 days . Also the digital experience of the mortgage lender provides an easy pathway to file a mortgage application.
| Pros | Cons |
|  The mortgage approval process just take one day |  Does not offer home equity loans |
|  Advertises HELOC that can be funded as early as 5 days |  Origination fees is a little higher than the other top-rated mortgage lenders |
| As per the latest Federal data, this mortgage lender offers low rates |
Flagstar
| Minimum credit score required | 580 |
| Minimum down payment | 3.5% |
| Loans Offered | Adjustable, Fixed, Home Equity. FHA, VA, USDA, Jumbo, Purchase, Refinance |
Product details of the no #6 Best Mortgage Lenders for low credit score in 2024
- The minimum credit score required for FHA is 580 and all other requires credit score greater than 620
- The mortgage services are available in all the 50 US States
Flagstar bank is one of the most prominent mortgage lender with fast application process , customizable interest Rate and various mortgage tools. The unique and diverse product offerings makes this mortgage lender stand tall among the others. It is among the best mortgage lenders for low credit score in 2024 as the interest rates are on the lower side to facilitate the buyers who want to renovate their homes. Moreover, borrowers can easily take advantage of the home equity products to upgrade their home . One of the distinct aspect of the lender is its mortgage quote comparison tool to get a sample rate that is tailored to their qualifications.
| Pros | Cons |
| Â This mortgage lender offers a diverse range of loans that include the major FHA, VA as well | Â Equity loans are geographically limited |
| Borrowers can easily buy and track the loan status online | Â The origination fees is on the higher side as compared to the other loans |
| Offers customized rate quotes with monthly payment estimates that includes the mortgage insurance well |
Fairway Independent Mortgage
| Minimum credit score required | 580 |
| Minimum down payment | 3.5% |
| Loans Offered | Adjustable, Fixed, Home Equity. FHA, VA, USDA, Jumbo, Purchase, Refinance |
Product details of the no #7 Best Mortgage Lenders for low credit score in 2024
- The minimum credit score requirement of 580 is only applicable on FHA.
- Â The mortgage lending company offers a great experience and fast closing across multiple U.S states
 Fairway offers a wide selection of mortgages that include the hard to find ones too such as ITIN loans for consumers without even social security number . But primarily it is regarded as the safe option among the best mortgage lenders for low credit score with greater down payment. Those who want to access ITIN and renovation loans can make use of the Fairway services. The website offers a smooth experience to the users with easy navigation to browse through the main lending options.
| Pros | Cons |
| Provides a robust suite of the loan products that include the ITIN and renovation loans as well | Mortgage rates for different loaning schemes are not available online |
| Receives high marks for the customer satisfaction |  Origination fees is on the higher side as compared to the other best mortgage lenders |
| Â Apply with alternative credit score if you have minimal credit score |
What factors are considered to get mortgage with low credit score?
The mortgage lender took in consideration the following factors when reviewing the mortgage application :
- Credit Score
- Debt to Income Ratio
- The employment history
- The size of your down payment
 If among the following two to three aspects outweigh the negative one then you have higher chance of getting your mortgage application approved.
What is the best mortgage lenders for low credit score for easy online application?
 Rocket Mortgage is regarded as the good option for the best mortgage loan for low credit score with smooth online experience. The lender only requires a minimum credit score of 580 for approval of FHA and VA mortgages.
How to choose low credit score mortgage lender for you ?
 Finding the appropriate mortgage lender when you have bad credit score can be a challenging task .When evaluating the mortgage lenders you want to make sure that the offering are affordable.
Getting the rate quotes and asking about the lender fees is crucial especially when you have less than ideal credit score. As with low credit scores you have to pay high rates but make sure that they will not be as high so that you cannot afford to repay them. When you compare the mortgage lenders side by side you can get better idea about the rates which can help you save money in the longer run.
How low credit score impacts the mortgage?
 The best interest rate is offered to the borrowers who have high credit score. If you have bad credit score than you will be quoted higher rates. This means that you have to spend thousand of dollar in interest over the life of the mortgage.
 For instance, if you are getting a mortgage of $350,000 for a 30-year plan you have to make payments of $2,447 per month and in total you have to pay $531,258 in interest over the 30 year loan term. The interest rate has a huge impact as you improve the credit score to get then 6.9% interest will be charged. This means that over the duration of 30 years you have to pay $479,920 in interest . Also this way you can save a substantial amount of money.
 How to refinance a mortgage with low credit score?
 If you are worried about refinancing a mortgage with bad credit score , consider the following options :
- Improve your credit score to qualify for the lower interest rates
- Ask your mortgage lender to refinance and they might approve considering your relationship with the lender
- Explore the portfolio lenders that offer the option of refinancing
-  Get a co-signer with strong credit history to become eligible for mortgage refinancing.
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Frequently Asked Questions
What is the low credit score required for mortgage?
 The least credit score that is required to get the mortgage is 500. Although there are fewer options for credit score of 500 but you will find mortgage lender that provides FHA loans in this credit range. But for this you have to make large down payment to get mortgage loan.
Can I get FHA loan with 500 credit score ?
 Yes you can avail FHA loan with a credit score of 500 but for this you have to make down payment of 10%. So when seen in contrast with a credit score of 580 and down payment of 3.8% , this is more or less similar.
 How much down payment is required to get bad credit mortgage loan ?
 A minimum of 10% down payment is required to get mortgage loan with bad credit .
