Bad Credit Buy A House With No Money Down May 2026

: This allows you to move in now while a portion of your rent goes toward a future down payment. This gives you time to rebuild your credit before you actually have to apply for a mortgage.

: Lenders view bad credit and zero equity as a high risk.

: For homes in designated rural or suburban areas, the USDA offers 0% down financing. Like VA loans, you typically need a score around 640 for automated approval, but manual underwriting may be available for lower scores if you have compensating factors. 2. The FHA Workaround (Down Payment Assistance)