Lenders have changed policies where requires approx. 3.5% or more as a downpayment, contact your local mortgage broker review loans made available based on financial review, credit scores, debt ratio, employment history.
Owning a home you receive annual tax benefits, interest rates are low,
Most companies do not want to hold on to the loans that is why there are standard qualifications most of the time, they have to structure the deal so they can sell the loan.
FHA has 3.5% down - but the home has to meet FHA standards.
and if you are a teacher CALSTER has a 3% down with a 5 year 17% silent second.
I have a client that will be closing escrow next week with one of these deals.
Any competent lender would be able to go over the details of the different loan programs out there.
With having bad credit it will make it harder to get a loan. You will more then likely have a higher interest rate.
You can always structure your purchase contract on your new home so that you can get cash from the seller to do a point buy down so you can get a better interest rate on your home loan.
You actually do might qualify depending on the City where you are looking to purchase your property and on how bad your credit is.
We just recently did a 100% Purchase transaction with a lender that we use.
His contact information is below.
American Guardian Home Loans
T: (949) 242-5215
T: (877) 242-5215
I hate to be the bearer of bad news but the best program out there is the 3.5% for FHA loan. The closing costs can be credited from the seller but you will have to come back with a down payment. The other option would be to rent to own. Where part of your down payment is drawn from a rental contribution AKA lease option. Many sellers that haven't been able to sell their home may consider this option.