You can also get a government-backed FHA loan with 3.5% down which is a great option if you have bad credit.
Depending on your down payment amount, it’s possible to get an FHA loan with a score as low as 500 points.
You’ll need to increase your score before you apply for a loan if your score is lower than 500.
How can I buy a house with bad credit and no down payment?
Apply for a Federal Housing Administration (FHA) Loan
To qualify for an FHA-backed mortgage, you’ll need a credit score of at least 580, though minimum score requirements will vary by lender. On the plus side, you’ll only need a down payment of 3.5% of the home’s purchase price.
What is the easiest mortgage to qualify for?
FHA loans: The federal Department of Housing and Urban Development (HUD) manages a mortgage insurance program operated by the Federal Housing Administration. FHA loans are some of the easiest mortgages to qualify for, especially as the down payment requirements are as low as 3.5%.
What happens if I don’t have a downpayment for a house?
The second option for a no down payment loan is a USDA loan. If coming up with a down payment is a struggle, an alternative to buying a house with no money down is an FHA loan. The FHA does not offer a no-money down loan. However, they do allow for loans with a down payment as low as 3.5% of the home’s purchase price.
How can I get money for a downpayment on a house?
How to Find a Down Payment to Buy a Home
- Save Your Tax Refund.
- Borrow From Parents.
- Sock Away a Set Amount Periodically.
- Ask the Seller to Give It to You.
- Check Out Government Programs.
- Tap Your Retirement Funds.
- Consider 100% Financing.