• Minimum score: 580 
• Down payment: 3.5% 
• Primary residence only
   

FHA loans allow borrowers with a 580 credit score to qualify with only 3.5% down, while scores between 500–579 may qualify with 10% down. 

Typical uses:

• First-time homebuyers 
• Lower credit borrowers 
• Buyers using Down Payment Assistance
   

Many lenders combine FHA loans with assistance programs.

Typical features:

• 3–5% grant or second loan 
• Helps cover down payment or closing costs 
• Often still works with 580 credit scores
   

This allows some buyers to purchase with very little cash out of pocket.

• Down payment: 0% 
• No mortgage insurance 
• Score: often 580–620 depending on lender
   

The Department of Veterans Affairs does not set a strict minimum credit score, but many lenders approve borrowers in the high-500 range if other financial factors are strong. 

• Minimum score: 580 
• Down payment: 3.5% 
• Includes purchase + renovation costs
   

This is commonly used for fixer-upper homes.

These are alternative loan programs offered by private lenders.

Typical features:

• Credit scores 500–580 possible 
• Higher down payments (10–20%+) 
• Often use bank statements instead of tax returns.
   

Non-QM loans are commonly used for:

• Self-employed borrowers 
• ITIN borrowers 
• Credit challenges.
   

These normally require 620+ credit:

• Conventional loans (Fannie Mae / Freddie Mac) 
• HomeReady 
• Home Possible 
• Most USDA loans (usually 640 for automated approval).