Bad Credit? No Credit? Best Home Loan Options in 2025

When you have bad credit or no credit, it can feel like you’re up against insurmountable obstacles when attempting to obtain a home loan. While that’s often the case with traditional lenders who want you to have a clean record, fantastic credit history, and proof of a hefty income, you might not necessarily have to work with a traditional lender to make your homeownership dreams a reality.

A traditional lender will want to see a credit score of at least 620 to even consider you for a conventional mortgage loan. If your credit falls below that or you don’t have a credit score yet, then your next option might be to consider opting for a government-backed loan with more flexibility.

Rocket Mortgage is a provider offering 10, 15, and 30 year fixed-term conventional loans and custom mortgages with fixed-rate terms from 8-29 years. They can also help with 30-year VA and FHA loans. That said, you will need a minimum score of 620 to qualify for a conventional loan and 500 for an FHA loan. This lender is a top choice because it’s one of the biggest lenders in America and typically has a quick closing time compared to other companies.

Another top choice in 2025 is Guild Mortgage. This company offers 10-to-30-year terms. For FHA, VA, and USDA loans, a minimum credit score of 540 is required. For a zero down payment loan, you’ll need a minimum score of 600, and for a conventional loan, you will need a 620 or higher. Guild Mortgage is a great choice if you don’t have a traditional credit history yet because the company will instead review utility bill payments, on-time rent payments, insurance history, and more to establish creditworthiness.

Another option is to seek out an alternative loan from a provider like Non-QM Home Loans. Non-traditional lenders don’t require you to have a credit score if you can show other forms of evidence to prove you have the means, ability, and integrity to pay off a loan to the provider.

More About Non-QM Home Loans

Our team of alternative home loan providers strives to offer convenient solutions for borrowers in non-traditional situations who need a mortgage to fund their goals. Our team has helped customers who have tried to get a conventional mortgage and failed. We offer alternative options with lower eligibility requirements.

We can help you if you have high debt-to-income ratios, a low credit score, or no credit. We can also help if you’re self-employed or need a stated income loan. If you receive an irregular income or can’t prove your income levels with paychecks from a standard employer, then a non-traditional lender can help you qualify based on other documentation like bank statements. We’ve helped customers who are foreign nationals, have low documentation, or can’t meet the other requirements of a traditional home loan.

To determine your specific options based on your circumstances, consider clicking through our interactive menu. You can also call us directly with your questions at (800) 413-0240.