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: You can qualify with as little as a 3.5% down payment .

A nationwide nonprofit that helps low-to-moderate-income families with and no credit score requirement , though it requires extensive financial counseling. Strategies to Boost Your Approval Odds

: You may still qualify, but lenders typically require a 10% down payment to offset the risk.

When your credit score isn't ideal, traditional conventional loans (which typically prefer scores above 620) may be out of reach. Instead, consider these alternatives: :

Targeted at rural and some suburban areas, these also offer options.

: They require $0 down payment and no monthly mortgage insurance. USDA Loans (U.S. Department of Agriculture) :

Buying your first home with bad credit is entirely achievable, though it requires strategic planning and specific loan programs designed for "subprime" or "fair" credit profiles. As of 2026, several government-backed and specialized programs make homeownership accessible for first-time buyers even with scores as low as 500. High-Potential Loan Options for Bad Credit

: These loans use standardized pricing, helping you avoid some of the steep fee increases that bad-credit borrowers usually face. VA Loans (Department of Veterans Affairs) :