Top 5 No-Money-Down Loans for Bad Credit in USA

USDA Loans

USDA loans, backed by the United States Department of Agriculture, are designed to help low- to moderate-income borrowers purchase homes in rural areas. One of the most attractive features of USDA loans is that they often require no down payment, making them accessible to individuals with bad credit.
Key Features:
No Down Payment Required: USDA loans typically do not require a down payment, allowing borrowers to finance 100% of the purchase price of their home.
Flexible Credit Requirements: While USDA loans have credit score requirements, they are often more lenient compared to conventional loans, making them accessible to individuals with bad credit.

VA Loans

VA loans are available to active-duty service members, veterans, and eligible spouses, and are guaranteed by the Department of Veterans Affairs. VA loans often require no down payment, making them an attractive option for borrowers with bad credit who have served in the military.
Key Features:
No Down Payment Required: VA loans typically do not require a down payment, allowing eligible borrowers to finance 100% of the purchase price of their home.
Lenient Credit Requirements: VA loans may have more flexible credit requirements compared to conventional loans, making them accessible to individuals with bad credit.

FHA Loans

FHA loans, insured by the Federal Housing Administration, are designed to help first-time homebuyers and individuals with low credit scores purchase homes. While FHA loans typically require a small down payment, there are options available that allow borrowers to secure financing without any money down.
Key Features:
Low Down Payment Options: While most FHA loans require a down payment of at least 3.5%, there are down payment assistance programs available that allow borrowers to finance their entire home purchase without any money down.
Lenient Credit Requirements: FHA loans have more flexible credit requirements compared to conventional loans, making them accessible to individuals with bad credit.

Navy Federal Credit Union (NFCU) Loan

Navy Federal Credit Union offers various loan options, including mortgages, with no down payment requirements for eligible borrowers. NFCU loans are available to active-duty service members, veterans, and their families.
No Down Payment Required: Navy Federal Credit Union offers no-money-down loan options for eligible borrowers, allowing them to finance 100% of the purchase price of their home.
Specialized Services: NFCU specializes in serving military personnel and their families, offering personalized service and tailored loan options to meet their unique needs.

Good Neighbor Next Door Program

The Good Neighbor Next Door Program, administered by the Department of Housing and Urban Development (HUD), offers HUD-owned homes to eligible law enforcement officers, teachers, firefighters, and emergency medical technicians at a 50% discount. Participants may be eligible for FHA-insured mortgages with no down payment.
50% Discount on Home Purchase: Participants in the Good Neighbor Next Door Program may purchase HUD-owned homes at a 50% discount, making homeownership more affordable.
No Down Payment Required: FHA-insured mortgages available through the program often require no down payment, allowing eligible participants to finance the entire purchase price of their home.