The Secret to Buying a House with Bad Credit

You might think that having a credit score in the 500s would keep you from buying a home. But that isn’t always the case.

What Credit Score is Needed to Buy a Home?

-Traditional fixed-rate loans typically require a minimum score of 620 to qualify -Adjustable-rate mortgages (ARMs) require a minimum score of 600 -FHA loans backed by the U.S. Federal Housing Administration require a minimum score of 580 if you make a down payment of 3.5% -FHA loans with a 10% down payment only have a minimum requirement of 500

Lender Credit Score Requirement

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.

VA Loans' Credit Score Requirement

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.

So, What's The Secret to Buying a House With Bad Credit?

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.

Why You Need a 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.

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