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).

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:

If traditional mortgages are out of reach, researchers point to more "creative" (though often riskier) financing: Hitting the Wall: Credit as an Impediment to Homeownership