Best mortgage lenders if you have fair credit in 2025

Buying a home can be stressful, especially if you're worried your credit score could hurt your chances of approval or a good interest rate.

While lenders typically want to see a FICO score of 620 for a conventional mortgage, many will work with borrowers with a fair or average credit score (considered a FICO score between 580 and 669).

We've chosen the best mortgage lenders for fair credit, based on affordability, down payment options and more. (See our methodology for more on how we made our picks.)

Who's this for? New American Funding has approved conventional mortgages for lenders with FICO scores as low as 580, compared to the 620 most lenders require.

Standout benefits: NAF guarantees closing on most loans within 14 business days, much faster than the industry average of 42 days. The NAF Cash program enables borrowers to make all-cash offers, which can be an asset in a competitive market.

Who's this for? Chase Bank's DreaMaker loan allows qualifying homebuyers to put as little as 3% down, and income requirements have been lifted in 15 cities, including Chicago, Dallas, Los Angeles and New York.

Standout benefits: Homebuyers in eligible areas can get a $7,500 grant to lower their interest rate or put toward closing costs or a down payment. Existing Chase customers may qualify for a discount on lender fees.

Who's this for?LoanDepot offers a $1,000 closing guarantee if you don't close on time. The online lender's AccessZERO loan only requires a 600 FICO score and comes with down payment assistance of up to 5% in the form of a repayable second mortgage.

Standout benefits: First-time buyers who purchase a property with a mellohome real estate agent and finance through LoanDepot may be eligible for up to $4,500 cash back.

Who's this for? When you lock in a 30-year fixed mortgage with SoFi, you can receive a 0.25% discount on your interest rate.

Standout benefits: If you purchase a home through the SoFi Real Estate Center powered by HomeStory, you can receive up to $9,500 in cash back. Current SoFi bank members can get a $500 discount on their mortgage loan.

Who's this for? Since they're backed by government agencies, USDA, FHA and VA loans have more flexible credit requirements. You only need a 500 FICO score for an FHA mortgage, for example. PNC Bank is one of the rare lenders that offers all three.

Standout benefits: The PNC Bank Community Loan allows homebuyers to put down as little as 3% with no mortgage insurance.

Who's this for? Navy Federal Credit Union, which lends to active-duty military, veterans and their families, will consider the banking history of existing customers who have less-than-stellar credit. It will also review non-traditional credit sources, like proof of on-time rent and utility payments.

Standout benefits: Like a VA loan, the Military Choice mortgage doesn't require a down payment or private mortgage insurance, but sellers can contribute up to 6% of the home's value toward closing costs.
Navy Federal's origination fee can be waived if you opt for a 0.25% rate increase instead.

Mortgage lenders use your FICO credit score to decide whether to approve your application and what interest rate to charge you.

Generally speaking, the higher your credit score, the lower your rate: Borrowers with credit scores of 760 or higher usually get the best rates.

The FICO credit score you need for approval depends on the type of mortgage.

Conventional loan

Conventional mortgages make up nearly three-quarters of all home loans. While lenders typically want to see a FICO score of 620 or better, there are options for borrowers with lower credit scores. Some will also consider nontraditional sources, like your banking history or on-time bill payments.

FHA loans

Insured by the Federal Housing Administration, FHA loans typically require a credit score of 500 and a 10% down payment. If you have a score of 580 or better, however, you can put down just 3.5%.

VA loans

Insured by the U.S. Department of Veterans Affairs, VA loans are available to current and former service members and their spouses. While the VA doesn't set any credit score requirements, most lenders will want a 620.

USDA loans

A USDA loan is insured by the U.S. Department of Agriculture and is meant for low- to moderate-income borrowers buying a home in a designated rural or suburban area.

The USDA doesn't set a minimum credit score requirement, though most lenders will want borrowers to have at least a 620.

Jumbo loan

A jumbo loan exceeds the limits for mortgages set by the Federal Housing Finance Agency, which means they can't be insured by FHA or bought by Fannie Mae or Freddie Mac. Since that puts lenders at increased risk, they require a higher credit score — typically a 700.

Orange County, California-based New American Funding is a direct mortgage lender servicing over 266,000 loans valued at $70 billion. While it ranked below average in J.D. Power's mortgage origination survey, in 2024, NAF landed near the top for mortgage servicers.

Mortgage types: Conventional, jumbo, FHA, VA, USDA

Minimum credit score: 620 for conventional loans. 500 for FHA

Minimum down payment: 3% for conventional, 3.5% for FHA loans, 0% for VA or USDA

Chase Bank has branches in 48 states and dedicated mortgage advisors in 38. It's also a top choice for customer service, with high scores on J.D. Power's mortgage origination and servicing surveys and an A+ from the Better Business Bureau.

Mortgage types: Conventional, FHA, VA, DreaMaker, jumbo, refinancing

Minimum credit score: 620 for conventional, 500 for FHA loans, 620 for VA loans

Minimum down payment: 3% for DreaMaker, 3.5% for FHA loan, 0% for VA loans

LoanDepot is one of the nation's largest nonbank mortgage originators, funding more than $300 billion in home loans since its founding in 2010. It scored above average on J.D. Power's 2024 U.S. Mortgage Servicer Satisfaction Study and earned an A+ from the Better Business Bureau.

Mortgage types: Conventional, FHA, USDA, VA, jumbo, refinancing, HELOC

Minimum credit score: 620 for conventional, 500 for FHA

Minimum down payment: 5% for conventional, 3.5% for FHA, 0% for VA and USDA loans

Started a student loan refinancing operation at Stanford, SoFi has expanded to offer a portfolio of financial services. While it has an A+ rating from the Better Business Bureau, SoFi was not included on J.D. Power's mortgage origination and servicer surveys and was rated below average on the 2024 Direct Banking Satisfaction Study.

Mortgage types: Conventional, FHA, VA, HomeReady, Home Possible, jumbo, refinancing, HELOC

Minimum credit score: 620 for conventional, 500 for FHA loan, 600 for VA, 700 for jumbo loan

Minimum down payment: 3% with conventional loans, 3.5% with FHA loans, 0% with VA loans.

PNC Bank is one of the ten largest mortgage originators in the U.S. by volume. It received an A+ rating from the Better Business Bureau but ranked poorly for customer satisfaction on J.D. Power's mortgage origination and servicing surveys.

Mortgage types: Conventional, FHA, USDA, VA, HomeReady, Home Possible, jumbo, refinancing, HELOC

Minimum credit score: 620 for conventional, 500 for FHA

Minimum down payment: 3% with conventional, 3.5% for FHA loans, 0% with USDA loans, 0% with VA loan

Navy Federal Credit Union membership is limited to active service members, veterans, Defense Department employees and their families. NFCU received above-average customer satisfactionscores on J.D. Power's mortgage origination and servicer studies.

Mortgage types: Conventional, VA, Military Choice, Homebuyers Choice, jumbo, refinancing, HELOC

Minimum credit score: Not disclosed

Minimum down payment: 0% for VA, Military Choice or Homebuyers Choice loans; 3% for conventional loans

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best average credit mortgages.

To determine which mortgage lenders are the best for borrowers with fair credit, CNBC Select analyzed dozens of U.S. banks, credit unions and online lenders.

We focused on the following features:

• Loan types: We weighed lenders more heavily if they offered government-backed FHA, VA and USDA loans, jumbo mortgages and specialty loans aimed at lower-income borrowers
• Minimum down payment: We noted when lenders had specialty loans with lower minimum down payments or offered down payment assistance. 
• Credit scores: All of the lenders on our list have loan options for borrowers with fair credit. When possible, we noted if there were mortgages for those with bad credit or no credit.
• Fees: We noted if a lender had lower lender fees or closing costs or if they discounted or waived certain charges.
• Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience. 
• Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

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