Buying a House With Bad Credit
If you want to take out a bad credit home loan, you’ll need to visit a specialist lender to present your case, or get a mortgage broker to do it on your behalf. To succeed, you’ll need to convince the lender that even though you’ve had credit problems in the past, you would be able to repay a mortgage in the future.
FHA loans come with many benefits, including easy credit requirements, small down payments, and flexibility in the type of property you can buy. They can be a good option for first-time homebuyers and consumers with credit and cash-flow issues.
FHA Loans. FHA Loans are issued by private lenders but backed by the Federal Housing Administration. You can qualify for one with a credit score of 580 and a down payment of 3.5% or with a score as low as 500 and a 10% down payment.
But don’t forget, if you purchase a home while having bad credit, you can always repair your credit and refinance your mortgage for much better terms.