Core Insights - The article discusses mortgage options available for borrowers with bad credit, highlighting various lenders and their offerings for September 2025 [1] Group 1: Best Mortgage Lenders for Bad Credit - PNC Bank is noted as the best for FHA loans for bad-credit borrowers, offering a minimum credit score of 600 and grants for closing costs ranging from $10,000 to $15,000 [2][7] - Pennymac is highlighted as the best for military-connected borrowers, with a low credit score requirement of 600 for FHA, VA, and USDA loans, and a 1% buydown option for the first year [5][10][15] - Rate (previously Guaranteed Rate) allows a higher debt-to-income ratio, making it suitable for modest-income households [11][16] - Guild Mortgage accepts alternative credit forms, allowing borrowers without a credit score to qualify based on payment histories [13][14] - Rocket Mortgage's RentRewards program offers financial incentives for renters looking to buy, with a minimum credit score of 540 for various loan types [18][23] - New American Funding caters to borrowers with foreclosures or bankruptcies, offering non-qualified mortgages [24][31] Group 2: Loan Types and Requirements - FHA loans are available for borrowers with credit scores as low as 500 with a 10% down payment, or 580 with a 3.5% down payment [27][34] - VA loans do not have a minimum credit score set by the VA, but lenders like Pennymac have low requirements [15][29] - USDA loans are aimed at low- and moderate-income households, with lenient credit score minimums [32] Group 3: Customer Satisfaction and Market Position - PNC ranks well for customer satisfaction according to J.D. Power, while Pennymac has a below-average rating [7][10] - Rate has a below-average score for customer satisfaction, despite offering flexibility in debt-to-income ratios [16] - Guild Mortgage also has a below-average rating in customer satisfaction, with higher loan costs compared to market averages [14][26]