By Rebecca Sabot, Real Estate Agent
© Rebecca Sabot. All rights reserved.

Yes — it may be possible to buy a home with bad credit in Bismarck or Mandan, North Dakota. But let’s be clear right up front: bad credit doesn’t mean no options, and it also doesn’t mean every option is a good one.

Many buyers assume they need perfect credit to buy a home. In reality, lenders look at the entire financial picture, not just a single number. Credit score, income, debt, employment history, down payment, and even recent credit behavior all matter.

If you’re searching online for “can I buy a house with bad credit in Bismarck ND” or “home loans for low credit score Mandan ND,” you’re not alone — and you’re asking the right question early. That’s a good thing.

WHAT DOES “BAD CREDIT” MEAN TO LENDERS?

“Bad credit” usually means a credit score below about 620, but the real story is more nuanced.

Some buyers have low scores because of medical bills, student loans, or a short credit history — not reckless spending. Others may have late payments, collections, or past bankruptcies. Lenders care why your score is low and what you’ve done recently.

A buyer with a 580 score who has paid everything on time for the past 12 months may be viewed more favorably than someone with a 640 score and recent late payments. Timing matters.

LOAN OPTIONS THAT MAY WORK WITH LOWER CREDIT

Several loan programs are commonly used by buyers in the Bismarck–Mandan area who don’t have perfect credit.

FHA loans often allow lower credit scores and smaller down payments, but they come with mortgage insurance and stricter appraisal standards.

VA loans (for eligible veterans) are very forgiving with credit and require no down payment, but income and residual requirements still apply.

USDA loans — available in many rural and fringe areas around Bismarck and Mandan — can offer 100% financing, though income limits and location rules apply.

Conventional loans typically require higher credit scores, but some buyers qualify sooner than expected with compensating factors like strong income or low debt.

This is where a local lender matters. Online calculators don’t know North Dakota underwriting quirks. Local lenders do.

WHAT CAN HOLD YOU BACK — EVEN IF YOUR SCORE IS “OKAY”

Credit score alone doesn’t guarantee approval. Buyers are often surprised by what causes problems.

High monthly debt, recent job changes, unpaid collections, or opening new credit accounts can derail an approval fast.

Another common issue is timing. Paying off old collections can temporarily drop your score. Making big purchases before closing can change debt ratios. This is why strategy matters.

Buying with bad credit isn’t about rushing — it’s about sequencing the right steps in the right order.

HOW LONG DOES IT TAKE TO IMPROVE CREDIT ENOUGH TO BUY?

Sometimes the answer is months, not years.

Simple actions like correcting errors, paying balances down, avoiding new credit, and establishing consistent on-time payments can move the needle faster than people expect.

I regularly see buyers in the Bismarck–Mandan market go from “not yet” to “approved” within 3–6 months — because they had a plan instead of guessing.

WHY TALKING TO A REALTOR EARLY ACTUALLY HELPS

Many people think they need to fix their credit before talking to a real estate agent. That’s backwards.

As a full-time realtor, I help buyers connect with trusted local lenders, understand realistic price ranges, and avoid moves that slow them down. Sometimes the best advice is to wait. Other times, buyers are closer than they think.

The worst move? Doing nothing because you assume the answer is no.

SUMMARY: YES, BAD CREDIT DOESN’T END THE DREAM — BUT IT CHANGES THE PATH

You may be able to buy a home with bad credit in Bismarck or Mandan. But success depends on honest numbers, local guidance, and a clear plan.

Buying before you’re ready can be expensive. Waiting without a plan can cost you years. The sweet spot is knowing exactly where you stand and what your next best move is.

If homeownership is on your radar — even “someday” — it’s worth having the conversation now.