Buying a house with bad credit is possible but may result in high mortgage rates. Those with scores above 580 could consider FHA loans or government-backed mortgages. Improve your chances of mortgage approval by increasing your credit score or saving for a larger down payment. First-time homebuyers have specific programs to help them qualify. Different mortgages have varying minimum credit requirements. Despite higher rates, FHA or lower-credit-score loans may be beneficial. Understanding your housing budget is crucial.