First Time Home Buyer With Bad Credit And No Money Down. To secure a 3 down payment on a one to two unit home you d need a credit score of at least 620. Pentagon federal credit union widely known as penfed provides members with 3 down mortgages if they are first time homebuyers.
For this type of loan however you will have to pay a one time funding fee meant to help offset taxpayers costs. A usda mortgage is a no money down home loan available to low income borrowers whose income is below 115 of the area median income ami with a 620 credit score. Department of hud 2019 annual report.
These loans are intended for borrowers with low to moderate income.
Usda loans usda loans provide home buyers the opportunity to purchase a rural home without any down payment. Pentagon federal credit union widely known as penfed provides members with 3 down mortgages if they are first time homebuyers. Tips for buying a home for the first time. There are two types of home loans that don t require a down payment.