Providing 20% or more can signal stability to a lender even if your score is low.
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
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 Providing 20% or more can signal stability to
For veterans and active-duty members, these often have no official minimum score, though many individual lenders set their own "overlays" (usually around 580–620). these generally require a 640 score