Texas Lone Star Lending Video

5 Options for Those with a Lower Credit Score

A low credit score may not necessarily hold you back from purchasing a home. There are options to consider with a low scored.

Posted 5/4/26  |  1:22

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Read the transcript

Intro:

If you’re worried your credit score might hold you back from buying a home, you may have more options than you think. Here are five options to consider with a low score.

1. FHA Loans

FHA loans allow for lower credit scores and more flexible qualification guidelines.

2. VA Loans

For eligible buyers, VA loans often have more flexible credit standards and no down payment.

3. Larger Down Payments

Putting more money down can help offset credit risk and strengthen your application.

4. Focus on Reducing Debt

Paying down debt — especially credit cards — can improve both your debt-to-income ratio and your credit score.

5. Improve Your Credit

Small actions like paying down credit cards and resolving delinquent accounts can make a meaningful difference.

Outro:

Your credit score is just one piece of the puzzle — understanding your options can make a difference.

Helpful next steps

  • Explore: First-time homebuyer Programs and situations that may help new buyers understand their options and take the next step.
  • Explore: Buy a home Loan options and special situations for people preparing to buy a home.
  • Use: Affordability Calculator Estimate a possible home price based on your down payment, loan assumptions, and either your income or your desired monthly payment.
  • Use: Rent vs. Buy Calculator Compare the long-term cost of buying a home with the cost of continuing to rent, using your rent, home price, loan assumptions, and expected time in the home.
  • Use: Payment Calculator Estimate a monthly mortgage payment based on purchase price, down payment, loan term, occupancy, and interest rate.

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