Of course you can !   I work with clients all the time that have bad, slow or NO credit at all.   Can they be APPROVED when they first walk in MY door ?   Of course not !

But by sitting down with a LICENSED Professional Mortgage Loan Originator, like myself, we can review their current situation, set up a plan to bring their scores up and prepare them to purchase a home of their own.

On the subject of a down payment, I now have a program where a first time home buyer can get as much as an $ 8,000.00 GRANT that doesn't have to be paid back to purchase a home worth as much as a quarter million dollars.

That's right;  FREE MONEY !

Isn't it amazing what a real LICENSED Professional Mortgage Loan Originator can do for their clients !  

Good morning Bob. In many cases, the answer would be yes. Once I figure out what the current credit situation is, I can then figure out what needs to be to done to improve the scores.

Most likely, the loan that could be done is an FHA loan, 3.5% is the down payment that will be required, some or all of that can be a gift from family.

Good to see Deanna Early and Joe Petrowsky answer before me --- they know more than I do in this area.  

Sure. It takes some time and following a disciplined plan to rebuilt your credit and save for at least the minimum needed for down payment. Consult a good mortgage broker to learn what is needed to get your FICO score into qualifying range.

Well said Deanna Early 

I like the answer by Deanna Early. 

There are some lenders who would consider providing funding in such a scenario.  However, the interest rate will likely be higher due to the higher risk and there may be other costs or conditions.

Sure, just find a seller willing to carry the note.

Absolutely, but it takes a bit of work to find the deal that works.

Of course. It depends when one have had bad credit. Usually, if it past 12 month, the lenders are more lenient. Nowdays, even those without downpayment can purchase a house...creative financing, co-signer, gift, local downpayment assistance, and so many more.

I think that is becoming more and more possible recently.  I'm not sure it's a good thing.

Of course you can. HOWEVER. I have an unpopular opinion, yay me. :) I actually think that with the exception of our veterans, that if you do not have enough money in the bank to pay cash for a purchase, you should wait until you've got 20% equity before making one. I realize that this does not always happen. Home ownership takes a lot of responsibility. Managing finances and saving up is a big part of that. There are exceptions, but as a general rule I think that we've come too far away from the traditional idea of homeownership. My two bucks.

I do not know any lenders in my area.

With the strict lending guidelines, it takes a really good loan officer to explain and assist any buyer in that situation. The sad part is good ones can be hard to find. That is where a buyer agent with patience can be the greatest help to guide these buyers, 

Sure!

Yes and no. It's case by case evaluation. There are no and low down payment programs available. Here we have state and county programs to help homebuyers with down payment.

Everything is possible with the right lender. Not saying it will be easy or cheap, but possible.