To buy a house with bad credit, first review and dispute inaccuracies on your credit report. Next, prioritize paying bills on time and reducing credit utilization to boost your score. Consider government-backed loans like FHA mortgages, which accept lower credit scores (as low as 500 with a 10% down payment). Secure pre-approval from lenders to understand borrowing limits and negotiate better terms. Finally, budget for a larger down payment or mortgage insurance to offset higher risk.

Data from the Consumer Financial Protection Bureau (CFPB) shows that 60% of consumers with credit scores below 600 face challenges qualifying for conventional loans. However, FHA loans accounted for 13% of all home purchase mortgages in 2022, with借款人平均信用评分仅为580 (Experian, 2023). Credit repair strategies, such as resolving collections or lowering credit utilization by 30%, can raise scores by 50-100 points within 6-12 months (MyFico, 2022). Lenders typically require a score of 620-680 for conforming loans, but nonprime lenders offer options starting at 500 with higher interest rates (3.5%-8.5%). Improving credit by paying bills on time for 12 months can reduce mortgage rates by 0.5%-1.5% (Federal Reserve, 2021). Despite challenges, 7.2 million U.S. households purchased homes with scores below 620 in 2022 (U.S. Census Bureau).