It can be challenging to find a first-time home buyer loan with bad credit and zero down payment, but there are some options available that you may want to consider:
USDA loans:
USDA loans are backed by the U.S. Department of Agriculture and may be available to first-time home buyers with credit scores as low as 640. These loans also require no down payment, making them a good option for those who don’t have a lot of savings.
VA loans:
VA loans are available to eligible veterans and active-duty service members and may be available to first-time home buyers with poor credit. These loans also require no down payment, but you’ll need to meet other requirements, such as a certificate of eligibility.
FHA loans:
FHA loans are backed by the Federal Housing Administration and may be available to first-time home buyers with credit scores as low as 500. However, a down payment of at least 3.5% is required.
Local first-time home buyer programs:
Some local governments and organizations offer first-time home buyer programs that may provide assistance with down payment and closing costs. These programs may also have less strict credit score requirements.
When considering a first-time home buyer loan with bad credit and zero down payment, it’s important to carefully review the terms and conditions of any loan offer before accepting it.
Additionally, you may want to work on improving your credit score over time to increase your access to more affordable loan options in the future.
