If you’ve been thinking about buying your first home but feel like your credit score is standing in the way, you’re not alone. At First Nation Financial, I’ve worked with countless buyers who assumed they needed perfect credit to qualify—when in reality, they were just a few smart steps away from making it happen.
Here’s the good news: in 2025, lenders have more flexible programs than ever for first-time buyers. And better yet, you can improve your credit faster than you might think—sometimes in just 30 to 90 days.
This guide is for you if:
- Your credit isn’t where you want it to be
- You’ve been told to wait, but you want to move forward
- You’re motivated to own a home and just need the right plan
In the next few sections, I’ll break down what kind of score you actually need, the fastest ways to boost it, and how First Nation Financial can walk you through the process with zero judgment and 100% support.
Let’s get you closer to homeownership—starting today.
What Credit Score Do You Really Need to Buy a Home in 2025?
Let’s clear this up right away: you don’t need perfect credit to qualify for a mortgage. In fact, the majority of first-time buyers we help at First Nation Financial have what we’d call “imperfect credit”—and they still get approved.
Here’s a breakdown of what most loan programs are really looking for in 2025:
🟩 FHA Loans
One of the most common loan types for first-time buyers.
- Minimum score: 580
- Some lenders may approve down to 500 with a larger down payment
- Great for buyers with limited savings or past credit hiccups
🟦 Conventional Loans (Conventional 97)
- Minimum score: 620
- Better rates if your score is 680+
- Lower PMI (private mortgage insurance) for higher scores
🟧 VA Loans (for veterans and eligible military)
- No official minimum credit score set by the VA
- Most lenders look for 580–620
- No down payment required, and no PMI
Now here’s where it gets real: even a 20–40 point improvement in your score can make a major difference in your monthly mortgage payment.
Let’s say you’re right around a 620. With a little help, we might get you up to 660—and that can improve your interest rate and reduce how much you’ll pay over the life of the loan. That’s why we start with where you are, then build a strategy to move you forward.
📊 Curious where you stand? Reach out for a no-pressure review. We can even run a soft credit pull to see what you’d qualify for—without hurting your score.
🔗 Get Pre-Approved Today
🔗 The Importance of Credit Scores in Securing a Mortgage
The Fastest Ways to Boost Your Score Before You Buy
When people hear “fix your credit,” they often imagine a long, frustrating process—but in many cases, that’s simply not true. If you’re getting ready to buy your first home, there are specific, proven steps you can take right now to raise your credit score quickly—and start building toward pre-approval.
At First Nation Financial, I’ve helped countless first-time buyers boost their credit scores in just a few months (sometimes even weeks), and the payoff is huge: better interest rates, more loan options, and a smoother path to homeownership.
Let’s look at five fast-acting strategies you can use to raise your score and get mortgage-ready in 2025.
1. Pay Down Credit Card Balances (Credit Utilization Matters—A Lot)
One of the biggest drivers of your credit score is how much of your available credit you’re using—this is called credit utilization. The lower your utilization, the better. Ideally, you want to stay below 30% of your total available limit, but getting it under 10% can give your score a real boost.
For example:
Let’s say you have a credit card with a $1,000 limit and a $700 balance. That’s 70% utilization—way too high. If you pay it down to $200, that puts you at 20%—which can trigger a noticeable improvement in your credit score within 30–45 days.
If you have multiple cards, focus on paying down the ones that are closest to their limit. These are usually hurting your score the most.
2. Don’t Close Old Accounts (Even If You Don’t Use Them Often)
This is a common mistake. When people are trying to “clean up” their credit, they often close old accounts thinking it will help—but it can actually hurt your score. Why?
Because part of your credit score is based on the length of your credit history. The longer your history, the better your score.
So if you have an older card with no balance and no annual fee, leave it open. Even if you’re not using it, it’s giving you:
- A longer average credit age
- A larger total credit limit (which improves utilization)
Tip: Put a small recurring charge (like Netflix or Spotify) on the card and pay it off monthly. That keeps the account active without adding new debt.
3. Make Every Payment On Time—No Exceptions
Your payment history is the single biggest factor in your credit score. Even one missed or late payment can drop your score by 50–100 points, especially if your credit is already fragile.
So here’s what you can do right now:
- Set up automatic payments for at least the minimum on every account
- Use calendar reminders or budgeting apps to track due dates
- If you’ve missed payments in the past, don’t stress—focus on building a perfect payment streak going forward
Good to know: Some credit scoring models start to forgive past late payments after 12 months of on-time behavior.
4. Dispute Any Errors on Your Credit Report
It might surprise you to learn that about 1 in 5 people have errors on their credit report that could be lowering their score. These might include:
- Accounts that don’t belong to you
- Incorrect balances or limits
- Late payments that were actually on time
- Accounts that should have dropped off by now
Start by going to AnnualCreditReport.com to request free copies of your reports from Experian, Equifax, and TransUnion. Review each one closely.
If you find something that doesn’t look right:
- File a dispute directly through the credit bureau’s website
- Provide documentation if you have it (like a payment receipt)
- Monitor your report for updates—many disputes are resolved in 30 days or less
Even correcting a small error can lead to a significant score increase.
5. Become an Authorized User on a Trusted Account
If someone close to you—like a parent, sibling, or spouse—has a credit card in good standing, they can add you as an authorized user. This allows you to benefit from their account’s positive history without having to apply for new credit yourself.
The ideal account has:
- A long history (several years)
- Low balance
- No late payments
- A high credit limit
You don’t even need to use the card. Just being on the account can help increase your average credit age and lower your overall utilization—both of which can improve your score.
Important: Only do this with someone you trust, and who has a strong track record. Their activity can impact your score, too.
These strategies aren’t just theory—they work. I’ve seen clients raise their scores by 40, 60, even 100 points using some combination of the steps above. And once that score is in the right place, the path to homeownership opens up.
📞 Need help figuring out what to fix first? Let’s talk. I’ll help you create a custom action plan.
What to Avoid When You’re Fixing Credit to Buy a Home
While there are a lot of things you can do to improve your credit quickly, there are also a few moves that can seriously derail your progress—especially when you’re preparing to buy a home. I see this all the time: someone’s doing everything right, and then they make one misstep that sets them back by weeks or even months.
Here are the top things to avoid if you’re working on your credit and planning to buy a home in 2025:
1. Don’t Take on New Debt (Like a Car Loan or Store Card)
It might feel tempting to upgrade your car or take advantage of a 0% offer on a store credit card—but if you’re planning to apply for a mortgage soon, new debt can hurt you.
Here’s why:
- Applying for new credit creates a hard inquiry, which can temporarily lower your score
- New accounts lower your average credit age
- More debt increases your debt-to-income ratio (DTI), which is something lenders look at closely
If you’re thinking about financing something big, talk to me first. It might be smarter to wait until after you close on your home.
2. Don’t Apply for Multiple Credit Cards at Once
Every time you apply for credit, it shows up as a hard inquiry on your report. One inquiry might not hurt too much, but several in a short period of time can look like financial instability to lenders—and they can ding your score by several points each.
If you’re trying to build credit, stick to one strategy at a time. Don’t shotgun applications across the internet. It’s better to improve the accounts you already have than to open more all at once.
3. Don’t Co-Sign Loans (Even for Someone You Trust)
This one’s tough, especially if a friend or family member asks for help. But here’s the deal: when you co-sign a loan, that debt becomes yours in the eyes of the lender.
If the other person makes a late payment—or worse, defaults—it will appear on your credit report and impact your score. Even if they pay on time, that monthly obligation will affect your debt-to-income ratio, which can limit how much home you qualify for.
Your heart’s in the right place, but your future home should be the priority right now.
4. Don’t Make Large, Unexplained Bank Deposits
This one catches a lot of buyers off guard. If you’re getting ready to apply for a mortgage, your lender will review your recent bank statements—and any large or sudden deposits (cash, Venmo, Zelle, etc.) can raise red flags.
Lenders want to know where your money is coming from. Unexplained deposits can delay your approval or even cause your loan to be denied.
Best practices:
- Keep detailed records for any large transfers or gifts
- If you’re receiving gift funds for your down payment, talk to your lender first—we can help you document everything properly
- Avoid moving money between accounts unless necessary
5. Don’t Miss Utility, Rent, or Cell Phone Payments
Many people don’t realize that some rent, utility, and mobile payments can show up on your credit report—especially if you’re using third-party services to report positive payment history.
Missing these payments, or bouncing around due dates, could hurt your score right when you’re making progress elsewhere. Set up reminders or auto-pay for these, too.
Bonus Tip: Don’t Assume You Have to Do It Alone
Fixing your credit is easier with guidance—and that’s what we’re here for. Before you take action, open new accounts, or move money around, talk to someone who can help you make a smart strategy.
At First Nation Financial, we’ll review your credit, answer your questions, and give you the straight truth—without pressure, without judgment.
📞 Book a Free Credit & Mortgage Strategy Call
Why You Should Talk to a Lender Before You Think You’re Ready
If you’re working on your credit right now, you might be thinking:
“I’ll reach out to a lender once I’ve fixed everything.”
But here’s the truth—you’ll get better, faster results by talking to a lender before you feel ready.
That may sound backwards, but I’ve seen it play out time and time again: buyers who are just guessing about what they need to fix, how much they need to save, or what their score “should be.” Meanwhile, the clock is ticking—and they could have been in a home already.
Here’s why you should bring in a mortgage expert early in the game:
You’ll Get a Personalized Credit Strategy—Not a Generic One
Every credit profile is different. Some people need to pay down a card. Others need to open a small secured account. Others might only need to wait for a dispute to be resolved. There’s no one-size-fits-all answer, and Google can only get you so far.
When you work with First Nation Financial, we’ll pull your credit (with your permission), explain what we see, and build a custom game plan to help you qualify faster. We know what lenders want to see, and we’ll help you focus on the actions that actually matter.
You’ll Know What You Qualify For Right Now
Here’s something I’ve learned after two decades in lending:
Many buyers are already qualified—they just don’t know it yet.
A lot of first-time buyers assume they need a higher credit score, more savings, or more income than they actually do. When we run the numbers, they’re shocked—in the best way. That’s the power of getting the facts early.
You’ll Avoid Mistakes That Could Set You Back
Remember the list of “what not to do” in the last section? One quick strategy call can help you avoid all of that. I’ve seen buyers lose months of progress because they opened a store card or made a large deposit they couldn’t explain.
A quick chat upfront can help you sidestep those issues completely—and keep your path to homeownership clear.
You’ll Feel More Confident and In Control
Buying your first home is a big deal—but it doesn’t have to be overwhelming. When you have a plan, a timeline, and someone in your corner, everything gets easier. That’s what we do at First Nation Financial:
We listen. We strategize. We help you take action.
🔗 Get Pre-Approved or Start a Credit Review
Conclusion: Credit Problems Don’t Mean a Dead End—They Just Mean You Need a Plan
If you’ve been putting off your homeownership goals because of credit challenges, I want you to know this: you’re not alone—and you’re not stuck.
Thousands of people every year buy homes with credit that’s less than perfect. The difference between those who move forward and those who keep waiting isn’t about being lucky or having rich parents—it’s about having the right information, the right strategy, and the right support.
At First Nation Financial, we don’t just look at numbers—we look at you. We understand that your credit report is a reflection of real life: student loans, medical bills, job changes, hard seasons. We’re not here to judge. We’re here to help you move forward.
Whether your score needs a little boost or a full reset, we’ll guide you through the process with clarity, compassion, and real solutions—not false promises or gimmicks. We’ll help you understand what matters most to lenders, what you can improve quickly, and how to position yourself for approval sooner than you think.
You’re closer to homeownership than you realize.
📞 Book your free consultation
📧 Get in touch with us
Let’s build your plan. Let’s build your confidence. And most of all—let’s get you home.
