If you are a veteran, service member, or eligible spouse, VA loans often have (though many lenders set their own "overlays" around 580–620).
: 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 how can i buy my first home with 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) :
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: : If you are a veteran, service member, or
: You may still qualify, but lenders typically require a 10% down payment to offset the risk.
: They require $0 down payment and no monthly mortgage insurance. USDA Loans (U.S. Department of Agriculture) : Strategies to Boost Your Approval Odds : These
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