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.

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. This means you need to look for the right lender if you have a lower credit score. Online lenders, big national banks, or credit unions may all offer more flexible score requirements. As a homebuyer with bad credit, be prepared to shop around.

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 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.

First-time Homebuyers

So, whether it’s your first time buying or just your first time in a long time, here are the steps you take to buy a home with bad credit: - Find a housing counselor in your local area. - Call for a home buyer consultation. - Learn about the options available to you. - Take a first-time homebuyer course.

Veteran Homebuyers

If you’re a military Veteran, Service Member, or surviving military spouse, then you have an advantage as a homebuyer with VA home loans. The VA does not place any lending requirements on the loans that they insure. There is no minimum credit score requirement and no down payment requirement.

Should you buy a house with bad credit?

This makes it crucial to consider your situation carefully and decide if it’s worth waiting to improve your credit before you buy. If you can take six months to build your credit while you’re building up savings for a larger down payment and building a budget to support you as a homeowner, you’ll be in a much better position.

This is something most people underestimate. You’re used to having a landlord or property manager that fixes things when they break. That’s all on you as a homeowner. You’ll have to find repair techs you can trust and make sure things get fixed to your satisfaction.

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