With the price of homes and low interest rates, many consumers are asking themselves if they can financially make the leap to homeownership with bad credit.
There will likely be more legwork up front, but there are absolutely ways to purchase a home even if you have bad credit. Some of these suggestions may require a bit of research on your end, but the payoff of owning a home is worth the effort. Here are a few options to consider if you are looking to buy a home with bad credit:
FHA Loan Requirements
Before taking out a mortgage it’s important to know what the FHA loan requirements are and whether you qualify for FHA-insured financing.
Government-based Programs
If your credit score is below 500, there are government programs you may qualify for that are not tied to a minimum credit score. Make sure to check with an expert when identifying any programs that may work for you.
First-time Buyer Options
If you’re a first-time homebuyer you may have a few more options if buying a home with bad credit. Whether in the form of a grant, credit, or loan many of these vehicles have stipulations that warrant research on your behalf. Whether researching programs with qualifying professions (such as veterans), or checking individual state programs, there are many options for people looking to buy their first home.
Buy All Cash
In a seller’s market where there are competitive offers, cash is king. If you have poor credit but plenty of savings, this may be the option for you.
It’s important whichever avenue you explore that knowledgeable real estate and mortgage professionals are part of your real estate team. At RE/MAX Capitol Properties we work with local mortgage lenders every day. We are happy to provide you with a list of companies and individuals who have proven over time to work with individuals and families to help get their credit up to par in order to qualify for a home mortgage. You deserve to work with a team of professionals that will not judge a situation, but with compassion will guide you through the process to homeownership. Give us a call today, so we can help you get started on the steps to the American Dream, 307-635-0303.
