7 Valuable  Bad Credit  Home Loans

FHA Loans

A mortgage loan provided by the Federal Housing Administration (FHA) can be a good choice  when buying a  home with poor  creditworthiness  (bad credit home loans), as FHA lenders have  the lightest rating requirements.

USDA Loans

Rural borrowers can apply for a mortgage loan directly from the U.S. Department of Agriculture (USDA) or through a USDA-approved lender. These loans are available to low- and middle-income borrowers who live in specific rural areas, usually based on population.

Conventional       Loans

Non-government Conventional  mortgages charge  higher interest rates  and fees for low-credit borrowers.

VA Loans

VA loans provide flexible, low-interest mortgages to the U.S. military (active duty and veterans) and their families, supported by the U.S. Department of Veterinary Affairs (VA), no down payment is required nor mortgage insurance, and closing costs are usually limited and can be paid by the seller.

 Freddie Mac Home Possible Loans

Freddie Mac’s first home buying program, Home Possible, helps buyers buy a home with a very low down payment and moderate credit. Home Possible is available to low- and middle-income borrowers and offers just a 3% down payment.

 Fannie Mae HomeReady Loans

Unrated borrowers are  eligible for a traditional  HomeReady loan with alternative credit sources such  as bill payment history.  Borrowers who pay  a minimum  down  payment of 3% but less than 20% must pay private mortgage  insurance (PMI).

NON-Qualified (NON-QM) Mortgages

The federal government has set a QM rule to create safer loans by banning or restricting certain subprime mortgage products.