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)

Buying a home with "bad credit" (typically defined as a FICO score below 620) is possible through several specialized government-backed and private programs available in 2026. These programs prioritize factors like stable income and down payment size over a perfect credit history. 1. FHA Loans (Federal Housing Administration)

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

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

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

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