How can I buy a house with Bad Credit?
Have you ever wanted to know if or how to buy a house with bad credit?
Buying a home is an important milestone in most of our lives. Having a home can be a smart investment vs. renting. So what is possible if you have bad credit when trying to buy a home. It can be intimidating to go for it and rejection can feel terrible. We put together a short list of what to look out for and how to improve the odds.
4 tips for buying a house with bad credit
There are two main loan types - Conventional and Government Backed Loans
Typically government backed loans are easier to get approved. However, they each have their own requirements and must be met for the loan to be approved.
Almost all loans require a downpayment
The exception to this rule is the VA Loan for veterans and active duty soldiers.
Each lender has a specific minimum credit score required to buy a house
The bottom line is that credit scores below 500 have almost no chance of getting a loan of any kind.
The Best Loan Type for Bad Credit is a Federal Housing Administration Loan
FHA Loans can be approved with credit scores as low as 500 with a 10% downpayment. The other requirement is that this loan type is for primary residence only.