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Can I Buy a House With Bad Credit?

Quick answer

Yes, you can buy a house with bad credit. FHA loans allow scores of 580 with 3.5% down and 500–579 with 10% down, and some VA lenders accept scores near 580. Expect higher rates and stricter debt limits. Waiting periods apply after bankruptcy (2 years for FHA Chapter 7) or foreclosure (3 years for FHA).

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Waiting periods after major credit events

EventFHAVAConventional
Chapter 7 bankruptcy2 years2 years4 years
Chapter 13 bankruptcy1 year of on-time plan payments1 year2 years from discharge
Foreclosure3 years2 years7 years

Ways to improve approval odds

  • Pay down credit cards to lower utilization.
  • Save a larger down payment.
  • Add a co-borrower with stronger credit.
  • Show 12+ months of on-time rent payments.
  • Avoid new credit inquiries.

Frequently asked questions

Non-QM lenders may approve recent credit events with larger down payments and higher rates. Compare carefully with FHA.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.