Buying A House With Bad Credit
You might think that having a credit score in the 500s would keep you from buying a home. But that isn’t always the case.
Depending on your circumstances, you may have lending options that make it possible to overcome that bad credit barrier when buying a home. This guide will teach you how to buy a house with bad credit, and where to go to find financing that will work for you.
What Credit Score is Needed to Buy a Home?
The minimum credit score you need to buy a home will vary based on a few factors: 1. The type of mortgage you want 2. The lender you’re asking 3. Who you are
Minimum Credit Score Needed for Different Mortgages
- Traditional fixed-rate loans - Adjustable-rate mortgages (ARMs) - FHA loans - FHA loans with a 10% down payment
Certain types of home loans allow you to qualify with a lower credit score while others require a higher score.
So, What’s The Secret to Buying a House With Bad Credit?
No matter what your circumstances are, there is one surefire way to find all the opportunities available to you to buy a house with bad credit. All it takes is one free phone call and a quick consultation with a HUD-certified housing counselor.
Why You Need a Housing Counselor
The U.S. Department of Housing and Urban Development (HUD) approves nonprofit financial counseling organizations to provide housing counseling. Counselors go through extensive training, learning about federal, state, and local programs that help homebuyers achieve the dream of homeownership.
Here are the steps you take to buy a home with bad credit:
Many first-time homebuyer programs apply to anyone that has not owned a home in at least three years.
- Find a housing counselor in your local area. - Call for a home buyer consultation. - Learn about the options available to you. - Take a first-time homebuyer course. - Create an action plan with your counselor.
Step 1: Contact the right people to find the right VA loan Step 2: Get your COE Step 3: Contact the lender or mortgage broker
If you’re a military Veteran, Service Member, or surviving military spouse, then you have an advantage as a homebuyer with VA home loans. The VA does not place any lending requirements on the loans that they insure.
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