No Down Payment, 660 Credit Score: New Mortgage Expands Access

A new mortgage pilot program offers a lifeline to homebuyers with little savings and not the best credit. These loans come with no down payment requirements and low credit score requirements. And they knock out two barriers to home buying for many potential borrowers: a hefty down payment and a strong credit score.

According to a Housing Partnership Network report written with Urban Institute researchers, the Inspire100 pilot program made 217 loans with a total volume of $51.7 million between September 2024 and December 2025.

Eighty percent of the borrowers in the program were first-time homebuyers, 60% of the borrowers were younger than 40, 71% were borrowers of color, at least 42% were from female-headed households, and 77% were borrowers with low or moderate incomes.

“It’s working,” said Zoila Jennings, the Lead Impact Investment Officer at Robert Wood Johnson Foundation, which helped fund portions of the pilot, to TheStreet. “The question is how do we do more?”

Fair Credit Scores Welcomed

Launched by the Equitable Homeownership Collaborative, the Inspire100 mortgage pilot requires a 660 credit score and no down payment to qualify for a mortgage. There is also no additional mortgage insurance, which borrowers on conventional mortgages have to pay when their down payments are below 20% of a home's purchase price.

These terms may appeal to borrowers with fair credit scores and limited cash for a down payment. A fair score is below the average credit score, but many lenders will approve loans with this score.

Borrowers with lower scores aren’t out of luck as those with credit scores between 640 and 659 need only to make a 3% down payment to qualify for an Inspire100 mortgage.

A Lower Barrier to Entry

The Inspire100 mortgages require borrowers to contribute a small amount of cash, a $1,000 borrower contribution. The pilot program also requires borrowers to have one month’s mortgage payment in cash reserves.

The Inspire100 mortgage pilot program has reached homebuyers in 22 states. Most borrowers are staying current on these mortgages. Inspire100 loans had a delinquency rate of 0.6% in the fourth quarter of 2025. In comparison, all home loans had a delinquency rate of 1.3%, according to the Urban Institute.

The pilot program has plans to reach out to new partners, increase its lending capacity, and broaden its reach to other geographic areas.

Other Mortgages For Low Credit Scores with No Down Payment

There are other mortgages that accept lower credit scores with no down payments. But borrowers may need to meet specific characteristics to qualify.

For example, VA loans are often available to borrowers with credit scores of 620 or higher though lenders may set their own standards. These home loans are available to veterans, service members, and surviving spouses, and are provided by private lenders. In addition, the U.S. Department of Veterans Affairs guarantees a portion of each loan.

Federal Housing Administration (FHA) loans are available to borrowers with credit scores as low as 580. These loans, which are provided by private lenders, have been around since 1934 and are insured by the FHA.

What about loans with no down payments? VA loans have no down payment requirements. And neither do USDA loans, which are backed by the U.S. Department of Agriculture and were made with rural buyers in mind.