The Secret to Buying a House with Bad Credit

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.

Certain types of home loans allow you to qualify with a lower credit score while others require a higher score. if you have the capital to make a 10% down payment on the house you want, you may be able to buy a home even with a 500 credit score. You just need to find the right lender.

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.

For example, a big national lender may approve a homebuyer with a 620 FICO for a fixed-rate mortgage. However, a smaller local bank might require a minimum score of 700 to qualify for a mortgage with them.

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.

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.

Housing counselors are a little-known resource that anyone can take advantage of anywhere in the U.S. They provide free information and one-on-one confidential counseling to homebuyers, and they know all the local programs, lenders, and services that are available in your area.

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