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Everything You Need To Know About Buying A House With Poor Credit
By JULIANA LUMAJ
Even though mortgage loan lenders don’t have a minimum desired credit score, buying a home can be a tough process if your score is below 580. However, it’s still possible to buy a home with poor credit, if you’re willing to go through some meticulous steps.
With a low score, you can have higher monthly mortgage payments and interest rates, and so to avoid this, the best way to begin is by boosting your credit score. Start by increasing your credit limit on your card, opening a credit card with an increased limit, or paying off your current credit card debt with a personal loan.
If you can’t wait for your credit score to increase, a different type of loan might be the best option for you. FHA loans require you to put down at least 10% of the home payment if your score is under 570; USDA loans require at least 640 with no required down payment and low interest rates, but they prefer to sell homes in rural or suburban areas.