FHA Loans

The Federal Housing Administration insures FHA mortgages. They accept lower credit scores than most other types of loans. In fact, some lenders may be able to approve you with a credit score as low as 500 (as long as you put down at least 10%). The one drawback to FHA loans is that they require a Mortgage Insurance Premium at closing as well as as part of your monthly payment. The exact cost depends on your loan balance and down payment.