If your credit isn't great, you might assume buying a house is off the table. It's not. Plenty of first-time buyers with low — or no — credit become homeowners every year. Here's what's actually possible in 2026.
What credit score you really need
It depends on the loan. FHA loans accept scores around 580 with 3.5% down, and even 500–579 with 10% down. Conventional loans usually want 620 or higher, and CalHFA Dream For All looks for 660+. So a lower score points you toward FHA — not away from owning a home.
No credit? Use alternative credit
If you have little or no traditional credit, some lenders build 'alternative credit' from your on-time payments for rent, utilities, phone, and insurance. This is common for ITIN borrowers and people new to the U.S. The lesson: keep records of those payments — they can become your credit story.
Buying with an ITIN
No Social Security number? An ITIN loan uses your ITIN instead, and many ITIN lenders are flexible on credit, leaning on your tax returns and payment history. It usually means a larger down payment (10–20%), but it's a real path to ownership.
How to improve your odds before you apply
- Pay every bill on time — payment history is the biggest factor.
- Pay credit-card balances below 30% of their limit.
- Don't open new credit accounts right before applying.
- Keep proof of rent and utility payments for alternative credit.
- Talk to an agent early — a plan beats guessing.
Where you start matters less than starting. Read the full home-buying steps at detuladocasas.com/en/steps-to-buying-a-house, and if you have an ITIN, see detuladocasas.com/que-es-el-itin. Then text Sal — he'll tell you honestly where you stand and what to fix first.
Frequently Asked Questions
Can you buy a house with bad credit?+
Yes. FHA loans accept credit scores around 580 with 3.5% down, and 500–579 with 10% down. There are also ITIN loans and lenders that use alternative credit (rent, utilities). Bad or thin credit is a hurdle, not a wall.
What credit score do you need to buy a house?+
Many FHA loans accept 580; conventional loans usually want 620+; CalHFA Dream For All looks for 660+. Lower scores have paths too, especially FHA and ITIN loans with alternative credit.
Can I buy a house with no credit history?+
Often yes. Some lenders build 'alternative credit' from on-time rent, utility, phone, and insurance payments. This is common for ITIN borrowers and newcomers. Keep records of those payments — they can become your credit story.
How can I improve my chances with low credit?+
Pay every bill on time, pay down credit-card balances below 30% of the limit, don't open new accounts before applying, and keep records of rent and utility payments. Even a few months of clean history can move your score.
Questions? We're Here.
Talk to Sal — Hablamos Espanol
Bilingual real estate agent serving Palmdale, Lancaster, Quartz Hill, and all of Antelope Valley. No pressure, no jargon.