BHHS Commonwealth Real Estate
Laura Schindler, BHHS Commonwealth Real EstatePhone: (617) 921-2920
Email: [email protected]

How to buy a house with bad credit

by Laura Schindler 05/11/2024

While getting approved for a mortgage does require a good credit score, it’s not impossible to buy a house with bad credit. Even if you’re denied by conventional mortgage lenders due to not meeting a minimum credit score, there are options for financing to help you buy your dream home.

Here is a basic guide to some ways you can buy a house with bad credit:

FHA loans

FHA loans are backed by the Federal Housing Administration and have different requirements for qualification than conventional loans. FHA loans are particularly beneficial for first-time home buyers who may have less credit history. There are some special requirements for a FHA loan, however, including only using it to buy a primary residence.

VA loans

If you’re a veteran or currently serving in the armed forces, you may qualify for a loan from the Department of Veterans Affairs. VA loans have their own requirements, including a special one-time funding fee, but can help you buy a house with a lower credit score. Sometimes they can even let you buy without a down payment.

USDA loans

USDA loans are another type of loan backed by the U.S. government, specifically the Department of Agriculture. If you want to buy a home in a rural area, a USDA loan might be a great option for you, even with a low credit score. USDA loan requirements are less strict than conventional loans, but are only available to fund the purchase of properties in designated areas.

Whether you qualify for a conventional loan or not, it’s never a bad idea to improve your credit score. With some time and effort you can boost your score and become eligible for better interest rates, lower down payments and other benefits from lenders. Make sure to keep these options in mind when considering your next financial steps in buying a home.

About the Author
Author

Laura Schindler

Dedicated to providing the highest quality service to all Buyers and Sellers

Certified in both Buyer and Seller Brokerage

Skilled in successful client negotiation

Specialist in all areas of Residential Sales Relocation Expert New Construction Specialist Rental Expert Recipient of multiple sales recognition awards

Committed to full service and personal attention Excellent choice as your Realtor®

My goal as a Real Estate professional is to provide the highest level of service for my clients. I feel that it is important to provide an array of information regarding all of your Real Estate needs. You will find on my website a wide selection of inline tools which can be used to provide you with the most current Real Estate information. I am here to help you every step of the way. You can count on me.

I welcome the opportunity to represent you in the sale or purchase of your home.