The absolute minimum for government-backed loans is 500 with FHA, requiring 10 percent down. At 580 and above, you only need 3.5 percent down with FHA. VA loans have no official minimum score though most lenders require 580 to 620. Non-QM lenders may work with scores in the 500s with larger down payments. The lower your score, the more you will need in down payment and the higher your rate will be, but getting approved is possible at nearly every credit level.

FHA loans typically close in 30 to 45 days. Non-QM loans can sometimes close faster, in as little as 14 to 21 days, because they use streamlined underwriting processes. The biggest factor affecting timeline is having your documentation ready including pay stubs, bank statements, tax returns or alternative documentation, and identification. Getting pre-approved before house hunting eliminates delays once you find the right property.

Not if you approach it strategically. FHA loans are fully regulated government-backed mortgages with borrower protections, not predatory products. Even Non-QM loans from reputable lenders are legitimate mortgage products. The key is to view your initial purchase as step one of a two-step plan: buy now at a higher rate, then refinance in 12 to 24 months after your credit improves to secure better terms. This approach builds equity immediately while planning for lower costs in the future.

This depends on your specific situation. If you have an urgent housing need, buying now with a plan to refinance later is often the right choice. Monthly mortgage payments build equity while rent builds nothing. However, if your credit is below 500 or you have zero savings for a down payment, a focused three to six month improvement period may be necessary. An NMHL loan officer can evaluate your specific situation and recommend whether to move forward now or take a short improvement period.