The Secret to 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.
– Traditional fixed-rate loans typically require a minimum score of 620 to qualify – Adjustable-rate mortgages (ARMs) require a minimum score of 600 – FHA loans backed by the U.S. Federal Housing Administration require a minimum score of 580 if you make a down payment of 3.5% – FHA loans with a 10% down payment only have a minimum requirement of 500
What Credit Score is Needed to Buy a Home?
Every lender has a set minimum credit score they require to approve homebuyers for a mortgage. Some lenders will accept lower credit scores while others have stricter requirements.
Lender Credit Score Requirement
Your personal situation may also come into play when it comes to getting a mortgage with bad credit. The best example is VA loans, which are backed by the U.S. Department of Veterans Affairs. VA loans have no minimum credit score requirement.
VA Loans' Credit Score Requirement
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.
So, What's The Secret to Buying a House With Bad Credit?
Housing counseling agencies are local, meaning they are approved to provide counseling in a specific state and region. That hyper-local focus means they know every avenue available to help homebuyers out.
Why You Need a Housing Counselor
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