Find Your Best Program
580-619
→ FHA Loan
Veteran
→ VA Loan
Self-Employed
→ Bank Statement
Below 580
→ Manual UW/Non-QM
Available Mortgage Programs
FHA Loans
Most Popular for Bad Credit
580+ Score
3.5% down payment
Key Features:
- ✓ Accepts 580 credit score with 3.5% down
- ✓ 500-579 score allowed with 10% down
- ✓ Flexible debt-to-income ratios (up to 57%)
- ✓ Gift funds and grants accepted
- ✓ Recent bankruptcy/foreclosure recovery paths
- ✓ Seller can pay up to 6% closing costs
Best For:
First-time buyers, recent credit events, limited down payment, high debt ratios
Considerations:
- • Upfront mortgage insurance (1.75%)
- • Ongoing monthly MI for life of loan
- • Property must be primary residence
- • Appraisal requirements can be strict
VA Loans
Best Terms for Veterans
No Minimum
Lenders typically want 580-620+
Key Features:
- ✓ No down payment required
- ✓ No mortgage insurance ever
- ✓ More lenient credit requirements
- ✓ Manual underwriting widely available
- ✓ Flexible debt ratios with compensating factors
- ✓ Seller can pay all closing costs
Best For:
Veterans, active military, surviving spouses with no down payment, challenged credit
Considerations:
- • VA funding fee (waived for disabled vets)
- • Must meet service requirements
- • Property must meet VA minimum standards
- • Occupancy requirement (primary residence)
Bank Statement Loans
Self-Employed Solutions
600+ Score
Some programs go to 550
Key Features:
- ✓ No tax returns required
- ✓ Income verified through bank deposits
- ✓ 12 or 24 month statements accepted
- ✓ Recent credit events OK (1-2 years)
- ✓ Asset depletion options available
- ✓ Investment properties allowed
Best For:
Self-employed, business owners, 1099 contractors, complex income, recent credit issues
Considerations:
- • Higher interest rates (typically 1-3% above agency)
- • Larger down payment required (10-20%)
- • More expensive closing costs
- • Prepayment penalties possible
Manual Underwriting
Human Review Process
No Minimum
Compensating factors required
Key Features:
- ✓ Available with FHA, VA, USDA
- ✓ Underwriter evaluates full story
- ✓ Alternative credit accepted
- ✓ Explanations for credit issues considered
- ✓ Compensating factors can offset score
- ✓ Recent payment history emphasized
Best For:
Thin credit files, unique situations, those below automation thresholds, extenuating circumstances
Considerations:
- • More documentation required
- • Longer processing times
- • Need strong compensating factors
- • Not all lenders offer it
Side-by-Side Comparison
| Feature | FHA | VA | Bank Statement | Manual UW |
|---|---|---|---|---|
| Min. Credit Score | 580 | No official min | 600 | Varies |
| Down Payment | 3.5% | 0% | 10-20% | 3.5-10% |
| Mortgage Insurance | Yes | No | Varies | Depends |
| Interest Rate | Market | Best | Higher | Market |
| Max DTI | 57% | Flexible | 50% | 45% |
| Income Docs | Standard | Standard | Bank Statements | Alternative OK |
| Best For | First-time buyers | Veterans | Self-employed | Unique situations |
Additional Specialized Programs
USDA Loans
Min Score: 640 | Down Payment: 0%
Rural property loans with no down payment. More restrictive on credit than FHA/VA but excellent rates.
Learn more →FHA 203(k) Rehab Loans
Min Score: 580 | Down Payment: 3.5%
Purchase and renovation financing combined. Same credit requirements as standard FHA.
Learn more →Asset Depletion Loans
Min Score: 620 | Down Payment: 20%
Qualify using assets instead of income. Good for retirees or high net worth with challenged credit.
Learn more →Hard Money / Bridge Loans
Min Score: None | Down Payment: 25-40%
Short-term loans based on property value, not credit. Bridge to better financing.
Learn more →Arizona-Specific Assistance Programs
Arizona offers state and local programs that can make homeownership more accessible for those with challenged credit.
Arizona Housing Finance Authority (AzHFA)
State program offering down payment assistance and competitive rates. More flexible credit requirements for first-time buyers.
- • Down payment assistance up to $15,000
- • Works with FHA, VA, USDA, Conventional
- • Income and purchase price limits apply
- • Homebuyer education required
County-Level Programs
Many Arizona counties offer additional assistance for residents with credit challenges.
- • Maricopa County: First-time buyer grants
- • Pima County: Down payment assistance
- • Pinal County: Rural development programs
- • Yavapai County: Teacher/public servant programs
Contact us to learn about programs in your area.
Which Program Is Right for You?
✓ If you're a veteran or active military...
Start with VA loans. No down payment, no mortgage insurance, and the most flexible credit requirements. Even with challenged credit, VA is often your best option.
✓ If your score is 580-619...
FHA is likely your primary option. With only 3.5% down and flexible underwriting, it's designed for this credit range. Consider improving credit if time allows for better conventional rates.
✓ If you're self-employed with fluctuating income...
Bank statement loans let you qualify without tax returns. Even with credit challenges, proving income through deposits can be your path to approval.
✓ If your score is below 580...
Manual underwriting or Non-QM programs are your options. FHA allows 500-579 with 10% down. Strong compensating factors and recent positive payment history are essential.
✓ If you have significant assets but low income...
Asset depletion loans use your savings/investments to calculate qualifying income. Works well for retirees or those with unconventional income.
Your Next Steps
1. Discuss Your Situation
We'll review your credit, income, and goals to identify the best program match.
Call 480-330-17242. Get Pre-Qualified
Quick pre-qualification shows you what you can afford and strengthens your offer.
Apply Online →3. Start House Hunting
With pre-approval in hand, you're ready to make offers with confidence.
Contact Us →Related Resources
Find Your Best Mortgage Program
We'll compare all available options and recommend the best fit for your situation.