💡 Backed by the Federal Housing Administration, these are the most popular option for bad credit. Buyers with a score as low as 580 can qualify for a 3.5% down payment. Those with scores between 500 and 579 may still qualify with a 10% down payment.

Banks may require more money upfront to secure the loan.

Lenders charge more to offset risk, increasing monthly payments.

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The buyer makes monthly payments directly to the property seller instead of a bank. This bypasses strict institutional credit checks.

Offering more cash upfront reduces the lender's risk and lowers your loan-to-value ratio.

Navigating the market with bad credit requires proactive financial management.