About 14% of mortgage applicants are turned down, according to data from the Pew Charitable Trust. If you're worried about your chances for approval, we've found loans and lenders that help homebuyers with non-traditional jobs or less-than-perfect credit, retirees and other unconventional borrowers.
For more on how we made our choices, view our methodology.
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Best for a low down payment: Rocket Mortgage
Who's this for? Rocket Mortgage is a good fit for homebuyers who need down payment assistance. The online lender's ONE+ program allows homebuyers to put as little as 1% down, with Rocket Mortgage covering an additional 2% of the purchase price.
Standout benefits: Rocket Mortgage's Fresh Start program helps homebuyers improve their credit score before applying for a mortgage.
- Offers a 1% down mortgage, making it a great option for first-time homebuyers who don't have enough saved up for a down payment.
- Above average scores for customer satisfaction from J.D. Power, meaning you'll be in great hands from application to closing day.
- With an average closing time of 22 days — nearly half the industry average — homeowners will be able to get the keys to their home as soon as possible.
- Rocket will give you a rebate of up to $10,000 for buying with Rocket Homes, which pairs homeowners with a real estate agent.
- No USDA mortgages, construction loans or HELOCs
- Hard credit check required for customized rate
- No physical branches
Best for bad credit: Cardinal Financial Mortgage
Who's this for? If you have poor credit, Cardinal Financial should be one of the first lenders on your list. It accepts borrowers with scores as low as 550 for FHA and VA loans and 580 for USDA loans.
Standout benefits: Qualified borrowers can get up to $6,500 in grants through the Cardinal Special Purpose Credit Program.
Cardinal Financial Mortgage
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Conventional loan, FHA loan, VA loan, USDA loan, jumbo loans and construction loans
Terms
Not disclosed
Credit needed
Minimum of 550 for some loan types
Minimum down payment
Not disclosed
Terms apply.
Pros
- Wide variety of home loan options
- More accessible loan options for borrowers with low credit scores
- Online support available
- Down payment assistance available in all 50 states
Cons
- Doesn't offer HELOC's
Best for VA loans: Navy Federal Credit Union
Who's this for? Navy Federal Credit Union is one of our top picks for VA loans, thanks to its flexible credit requirements and multiple no-down-payment options.
Standout benefits: In addition to traditional VA loans, Navy Federal issues Military Choice and Homebuyers Choice mortgages, which allow sellers to contribute up to 6% of the home's value toward closing costs. If you find a better rate with a competitor, Navy Federal will match it or give you $1,000 after closing.
Best for non-QM loans: Guild Mortgage
Who's this for? Non-qualifying mortgages (or non-QM loans) are ideal if you have thin credit history or income volatility. Guild Mortgage offers non-QM options for a variety of unconventional borrowers, including self-employed workers, medical professionals, Amazon employees and applicants without a Social Security number.
Standout benefits: Guild's Zero Down mortgage combines a 3.5% FHA loan with a forgivable second mortgage, bringing your down payment to 0%.The Arrive Home loan, another zero-down mortgage, is available to borrowers earning up to 160% of the area median income.
- Offers a wide range of uncommon loans, so you're more likely to find one that fits your needs than with other lenders.
- Boasts several down payment assistance programs, making it a great lender for first-time homebuyers who may not have much saved up for a down payment.
- Some loans closes can receive a 17 day closing guarantee, which can ensure you get the keys to your home in quicker than half the average timeline.
- E-closings available so you may be able to finalize your mortgage paperwork from your couch.
- Rates are not available online
- Does not issue mortgages in New York
Best for lender grants and credits: Citibank
Who's this for? Citibank is an excellent option for closing cost grants and other assistance. Qualified borrowers can get up to $7,500 with the Lender Paid Assistance program and existing Citi customers may be eligible for an interest rate discount or a $500 closing credit.
Standout benefits: With as little as 3% down, you can get approved for Citi's HomeRun mortgage with no private mortgage insurance.
- Boasts lower-than-average mortgage rates, making it a good for those looking for affordability
- Great perks for existing customers like closing credits or rate reductions
- Up to $7,500 closing grant, a game changer for those who don't have a lot of cash saved up beyond their down payment.
- Jumbo loans available for up to $8 million — unusually high — so it will cover most purchases.
- No USDA loans
- No zero-down payment option except for VA loan
- Limited customer service hours
- Received F from Better Business Bureau.
Best for FHA loans: Chase Bank
Who's this for? Chase is one of the biggest lenders of FHA loans, which are government-backed mortgages that only require a 500 FICO Score.
Standout benefits: Chase's DreaMaker loan requires only a 3% down payment, and income limits have been lifted in many cities.
- Existing Chase customers can get a rate reduction
- Above-average customer satisfaction scores, meaning you're likely to get stellar service and customer service pros who are ready to answer your questions and guide you through the process
- Closing timeline guarantee so you won't have to worry about whether or not you'll close on time.
- Homebuyer grants of up to $7,500, a huge cash infusion that homebuyers can put towards closing costs and down payments.
- The Chase DreaMaker℠ loan only requires 3% down payment for qualifying homebuyers, lower than the typical 5% minimum required for a conventional mortgage, making it a great option for those who haven't saved much for a down payment.
- No USDA loans or HELOCs
- No closing guarantee for refinancing
- Chase homebuyer grant only available in select areas.
How do I get approved for a mortgage?
Here's what you typically need to qualify for these common mortgages.
How to get a mortgage with bad credit
There are ways to get a home loan with a credit score below 620. Here are some options:
1. Government-backed mortgages
FHA loans
Because they're backed by the Federal Housing Administration, FHA loans have laxer credit requirements than conventional mortgages: You can be approved with a FICO Score of 500 if you have a 10% down payment or if you have at least 580 and only need 3.5% down. Unlike other low-down-payment options, FHA loans don't have income limits.
VA and USDA loans
Guaranteed by the U.S. Department of Agriculture and the Department of Veterans Affairs, USDA and VA loans offer lower interest rates and no down payment.
For USDA loans, you must be using the loan to buy a primary residence in an eligible area, and for VA loans, you must be a qualifying active service member or veteran.
2. Get a co-signer
If you have a relative or friend with good credit, you can ask them to co-sign your mortgage. It's a big ask, though, since it means they're financially responsible if you can't make payments. Not all lenders will accept co-signers and some government-backed loans have strict co-signing requirements.
3. Strengthen your application
A larger down payment can offset a low credit score by reducing the lender's risk. If you have time, you can also try to raise your credit score by making on-time payments in full, lowering your debt-to-income ratio and checking your credit reports for errors.
What is a non-QM loan?
A non-QM loan, or non-qualified mortgage, is a home loan that does not follow the standard requirements set by the Consumer Financial Protection Bureau. Here's where they differ from conventional mortgages:
- Debt-to-income limits: Non-QM loans may allow for higher debt-to-income (DTI) ratios.
- Income documentation: Instead of W-2s and tax returns, borrowers submit bank statements, 1099s, asset depletion, or rental cash flow to prove they can repay the loan.
- Government backing: Non-QM loans are not backed by Fannie Mae or Freddie Mac.
- Cost of borrowing: Because lenders take on more risk, borrowers usually face higher mortgage rates or larger down payments
Who is a non-QM loan for?
- Self-employment: Freelancers, contractors and small-business owners
- Retirees and high-net-worth buyers: If you're living off your savings rather than a monthly paycheck.
- High debt-to-income (DTI) ratio: Borrowers whose monthly debt payments exceed the standard 43% cap used for conventional loans.
- Recent credit recovery: Buyers who have experienced a recent bankruptcy, foreclosure or short sale.
- Alternative identification: People who use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number.
- Real estate investors: People using rental property cash flow (DSCR) to qualify rather than personal income.
How to calculate your mortgage payment
Mortgage FAQs
What is the easiest mortgage to get approved for?
Because they're guaranteed by federal agencies, FHA, USDA and VA loans are typically the easiest to get approved for. FHAs have the broadest approval qualifications. While VA loans have flexible down payment and credit score requirements, they are available only to current or former service members. USDA loans have both income and location requirements.
What is the lowest credit score you can have to get a mortgage?
Credit score requirements vary by lender and mortgage type. However, you can typically qualify for an FHA loan with a score as low as 500 if you put at least 10% down and have a debt-to-income ratio of 50% or lower.
What is the minimum down payment on a house?
Most private lenders want at least a 3% down payment on a conventional mortgage. The minimum for a government-backed FHA loan is 3.5% if you have a credit score of at least 580, or 10% if you have a score between 500 and 579. VA and USDA loans don't require a down payment.
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Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. 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 independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
Our methodology
To determine which mortgages are the easiest to qualify for, CNBC Select analyzed numerous mortgage types offered by various institutions, including online lenders and brick-and-mortar banks.
When narrowing down our choices, we focused on the following features:
Credit score requirements: We noted lenders that work with borrowers who have less-than-perfect credit, which can increase approval chances.
Loan types: We weighed lenders more heavily if they offered government-backed FHA, USDA or VA loans, which have more flexible requirements, or if they had loans for low-income borrowers.
Fees: Common fees associated with mortgage applications include origination fees, application fees and closing costs. If possible, we noted if a lender had low lender costs, discounts or fee waivers.
Loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders offering additional specialty loans with a lower minimum down payment amount.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our picks for the easiest mortgage companies to get approved by are:
- Best for a low down payment: Rocket Mortgage
- Best for low credit scores: Cardinal Financial
- Best for VA loans: Navy Federal Credit Union
- Best for non-QM loans: Guild Mortgage
- Best for lender credits and grants: Citibank
- Best for FHA loans: Chase Bank
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