Programs For Buying A Home With Bad Credit May 2026

VA loans generally require no down payment and no private mortgage insurance (PMI).

FHA loans are the most common path for buyers with lower credit scores because the government insures the lender against loss.

Lenders may approve scores as low as 550 if you have strong "compensating factors" like high residual income or significant cash reserves. Home Loans For Bad Credit: Know Your Options - Chase Bank

If your score is at least 580, you may qualify for the minimum down payment of just 3.5% .

You can qualify with a score between 500 and 579 if you can provide a 10% down payment .

FHA rules allow sellers to pay up to 6% of the home's purchase price toward your closing costs. 2. VA Loans (U.S. Department of Veterans Affairs)

Lenders often accept non-traditional credit histories, such as consistent rent or utility payments, if you lack a standard credit score.

For eligible veterans, active-duty service members, and surviving spouses, VA loans offer some of the most flexible credit requirements.