Just because you have bad credit doesn't mean you can't buy a home. I work with some lenders that start lending money with a credit score as low as 540, you will just need to contact some lenders in your area, they should be able to send you in the right direction. Another option for you is to do a lease purchase. With a Lease purchase you typically have to come up with 5-10% down and then you have a set term typically 3 years where you make payments to the owner of the property. All the while working to repair your credit so that by the end of the term you are credit worthy and can obtain a loan to finance the balance owed on the property. A portion of your down payment and a portion of the monthly payments will be used as your down payment when your ready to finance, so ideally you will have 20% down and you can do a conventional mortgage giving you the best interest rate and saving you from having to pay PMI.