If you have a low credit score and want to buy a home, there are things you can do to compensate for this.  There are other factors at play.

Banks will consider credit scores of less than 620 or in the 500’s as low. Even with a low credit score, it is possible to buy a home. There are lenders that specialize in loans for buyers with low credit scores. Lenders may approve your loan application if they understand the reason behind the low score, and you still meet their requirements. Assemble your financial records from the past two years such as bank statements, tax returns and pay stubs, and be prepared to demonstrate your ability to make your payments. Certain lenders have different products that don’t have requirement as to the credit scores. The amount you’ll need as a down payment will vary by lender and the type of loan you are seeking, so plan ahead and save as much as possible. Since the interest rate you’ll pay with a low score will be higher, you should prepare to pay a higher deposit to keep your monthly payments as low as possible. 

Constantly work to improve your credit score. Transfer balances from cards that have a high interest rate to something better. Make all payments on time, and don’t open any more lines of credit. Consider using a credit repair company to speed up the process. If you get a loan with a low credit score, you can improve the score and refinance a few years later.