Targeted at rural development, these generally require a 640 score, but can offer exceptions for applicants with "compensating factors" like a very low debt-to-income ratio. 2. The "Compensating Factors" Strategy
Most traditional lenders prefer a score of at least for conventional loans. However, several government-backed programs are specifically designed for lower-credit borrowers: can you buy a house with poor credit
Backed by the Federal Housing Administration, these allow scores as low as 500 (with a 10% down payment) or 580 (with a 3.5% down payment). Targeted at rural development, these generally require a