It is very difficult but not impossible. Traditional lenders and government-backed programs generally require a minimum 500-580 score. Your primary option at this level is a Non-QM (Non-Qualified Mortgage) loan, which has more flexible underwriting but requires a larger down payment, typically 20% or more, and carries higher interest rates. Working with a specialist lender like NMHL can help you explore these options.

With disciplined financial habits, you can see meaningful improvement in 6-12 months. Focus on making every payment on time, paying down revolving balances, and disputing any errors on your credit report. Even a 40-80 point increase opens significantly more mortgage options, including FHA loans at 580.

With a 500 credit score, most Non-QM lenders require a minimum 20-25% down payment to offset the higher risk. Some lenders may require even more depending on other factors like your debt-to-income ratio and employment history. The larger down payment helps secure approval and can slightly lower your interest rate.

In most cases, yes. Waiting 6-12 months to improve your score to at least 580 can save you tens of thousands of dollars over the life of your loan through lower interest rates, smaller down payment requirements, and access to government-backed programs like FHA. NMHL can create a personalized credit improvement plan to get you mortgage-ready faster.