Having bad credit can affect you when ready to buy a home, but there are bad credit home loan lenders available to help.

While it used to be almost impossible to get a home loan without certain credit scores, there are programs in place that make it possible to buy a home with lower credit scores.

They take compensating factors into account, such as down payments of 10% or more, low debt-to-income ratios; no outstanding debt; a large amount of cash reserves; a significant amount of time with the current employer; and a high income.

These are a few loans that help:

• FHA

The FHA insures lenders who allow buyers with poor credit to obtain mortgages with as little as 500 credit with 10% down, and a score of 580 with 3.5% down.

FHA loans also allow gift funds for the down payment from a friend or family member.

• VA

VA loans have a number of benefits, including no money down and no mortgage insurance. There is no minimum credit score requirement, but they are known to work with individuals who have a credit score of 580.

• USDA Rural Development

The USDA home loan program are a 100% financing home loan, usually requiring a credit score of at least 640 to qualify.

• Home Improvement

The FHA 203(k) home loan provides funds to buy a home that needs repairs and renovations. The loan also provides additional cash to repair the home. This loan usually requires a credit score of 640.