7 Ways to Buy a Home With Bad Credit
Some borrowers have a less-than-perfect, credit score, and feel like they have no options when it comes to buying a home. Well the home of your dreams isn’t as far away as it seems. Here are some ways that you can give yourself some home buying options even with bad credit.
1) Knowing Where You Stand
Understand where your credit is and educate yourself on you options. Staying knowledgeable about your credit and being clear when applying for loans can be invaluable to the process of buying a home with bad credit.
The HOPE Program helps you on every step of the way when it comes to home buying with bad credit. They help with:
- Credit Repair
- Identity Theft Protection
- Consultancy, Leads & Resources
- Additional Benefits (Employment, Education, Automotive, and even Finance!)
3) Bad Credit Repair
There are steps you can take to repair your bad credit and change your home buying game.
- Lexington Law will help you open up your credit options. With a free credit report summary and consultation.
- Build your credit score just by paying your rent on time.
4) FHA Loan
Getting an FHA Loan could be your saving grace in a bad credit home buying situation. The FHA requirements for credit score and down payments are far lower than for conventional loans. Borrowers can technically qualify for an FHA loan with credit scores of at least 580 and a down payment of just 3.5 percent, according to HUD.
5) Pay Day Loans
When you need to get quick access to money, payday loans are one of the best options for you to consider. Compared to other types of credit, they have several advantages that you simply cannot get elsewhere.
- Easy to Qualify For
6) USDA Home Mortgage
Did you know you can buy a house without putting a single dollar down on the closing table? Though it sounds too good to be true, the United States Department of Agriculture Guaranteed Rural Development Loan, also known as a USDA or rural development loan, helps potential home buyers become homeowners with several perks unheard of with different loan programs.
- No Down Payment
- Lower Than Market Interest Rate
7) VA Loan
The VA Loan program is the most powerful home loan program on the market for many veterans, service members and military families. These flexible, government-backed loans come with significant benefits that open the doors of home ownership to veterans who might otherwise struggle to obtain financing.
- No Down Payment
- No Private Mortgage Insurance
- Competitive Interest Rates
So don’t worry! Even if you have bad credit, there are options for you to repair, or just work around your credit to get into the home that you deserve.Share