Best Mortgage Lenders for Bad Credit for 2025

Investopedia’s pick for the best mortgage lender for bad credit is American Pacific Mortgage. It offers many types of mortgage loans, including Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and Department of Agriculture (USDA) loans. It also offers non-QM loans with more favorable borrower requirements, including lower credit scores.

The lenders we identified for our list offer several mortgage options for borrowers with less-than-ideal credit scores. They also have competitive rates and low down payment requirements, making them good options for borrowers just starting out, or just improving their credit.

We researched 38 of the most active mortgage lenders, including major banks and credit unions and major non-bank lenders. We evaluated them on several factors, including rates, eligibility requirements, customer service, typical loan closing times, and more.