Eric: FHA has a 3.5% down payment.
The loans will go as high as 625k in our area (SF Bay Area)
As far a 'bad' credit, I would need to take a look at what specifcally you mean by bad.
WIth an FHA loan, 640 is considered a good credit score. Not so much with conventional.
So, it is all relative.
The credit report is a gauge of how you will be as a mortgage payment risk.
If your credit is bad due to late payments here and there it is not as negative as bad credit resulting from a car reposession or defaults on credit cards.
As always, you are welcome to discuss with me through email email@example.com