Mortgage lenders offer options for borrowers with bad credit in January 2025

In January 2025, several mortgage lenders are offering options for borrowers with low or bad credit scores. Carrington Mortgage Services leads the list, accepting scores as low as 500 for FHA loans, while Guild Mortgage is noted for its flexibility with borrowers lacking credit history. New American Funding and Rocket Mortgage also provide various mortgage options for those with low credit scores. New American Funding allows scores as low as 580, while Rocket Mortgage requires a minimum score of 580 for FHA loans, emphasizing a smooth online application process. CrossCountry Mortgage stands out for having no minimum credit score requirement, making it accessible for many borrowers. However, all lenders typically charge higher rates for lower credit scores, and borrowers should be cautious of potential predatory lending practices.