If you cannot secure a home loan, first review your credit score and address any errors or high debt. Consider negotiating with creditors to reduce balances or settle accounts. Second, explore alternative loan programs like FHA loans (which require a 580+ credit score) or VA loans (no credit score requirement for veterans). Third, seek down payment assistance programs, which can cover up to 100% of the required deposit. Finally, adjust your budget to save more for a larger down payment or explore adjustable-rate mortgages (ARMs) with lower initial rates.

Credit repair and alternative loan options are critical because lenders prioritize borrowers with scores above 620 (FICO). A 2023 Federal Reserve report found that 62% of rejected applicants had credit scores below this threshold. FHA loans, requiring just 3.5% down (580+ score) or 10% (500-579), helped 1.2 million U.S. homebuyers in 2022, per Housing and Urban Development data. VA loans, offered to veterans, enabled 620,000 home purchases in 2023, bypassing traditional credit checks. Down payment assistance programs, supported by $19.5 billion in 2022 federal funding, reduced barriers for 30% of first-time buyers, as noted by the National Association of Realtors. ARMs accounted for 25% of new mortgages in 2023, appealing to borrowers planning short-term ownership, per Mortgage Bankers Association statistics. Combining these strategies increases approval odds by 40-60%, according to LendingTree’s 2024 analysis.