Buying a House with Bad Credit

Purchasing a home requires having enough money on hand for a down payment, a history of on-time payments over the past couple of years, and a steady income; but do you necessarily need a perfect credit history? While a high credit score will often bring more favorable loan terms, you can still buy a home with less than stellar credit.

Take Steps to Improve your Credit

Regardless of your credit history, it is important to reduce debtand improve your credit score as much as possible in order to get the best possible loan terms. To find out where you stand regarding your credit rating, you should look at your credit score. There are a number of resources available to check your credit scores for free that do not impact your overall score.

Mortgages for Less-Than-Perfect Credit

When looking for a loan with blemished credit, an FHA loan is often a smart choice. The Federal Housing Administration (FHA), part of the Department of Housing and Urban Development, guarantees loans administered by authorized lenders and is typically more flexible when looking at someone’s past credit history.

In addition to FHA loans, there are other programs available that offer the ability to make lower down payments and are also more flexible on credit than conventional mortgage financing. Two such options are the Rural Development loan, available through the US Department of Agriculture, and VA loans, offered through the Department of Veterans Affairs.

Bottom Line

Buying a home with bad credit can be a challenge, but it is far from impossible. With more than 20 years of experience in the Central Florida area, you can trust Butler Mortgage to find a mortgage product that perfectly suits your needs. You can also rest assured that we’ll be here to help you every step of the way, including on closing day. Contact us today at 407-931-3800 or online to request a complimentary consultation.