There are plenty of loan programs available to homebuyers, even if their credit isn’t perfect.
If you’re thinking of buying a home, there are several different loan programs available to homebuyers, depending on what you qualify for.
Conventional loans typically need more of a down payment, although there are some loan programs that offer 100% financing, such as the THDA, USDA, and VA loans. FHA loans, meanwhile, only require 3.5% down. If you have more cash to put down, there are conventional loan products you can opt for where you won’t have to pay private mortgage insurance.
A lot of people aren’t aware that you can also qualify for rehab loans, such as the FHA 203(k) rehab loan. These loans give you the money to fix up a house in the event that you want to buy a fixer-upper. You can qualify with a lower credit score, and they’ll give you the funds to repair the house. Afterward, you can convert your mortgage into a standard FHA loan.
As far as credit score goes, some lenders are willing to go as low as 580, but you may pay a higher interest rate in that case. Speaking of lenders, it’s always a good idea to meet with a local mortgage broker. I know there are plenty of online brokers you can use, but sitting down with a local broker means they can physically show you what your payments will be.
Even if your credit isn’t where you want it to be, it doesn’t take a lot to get it restored. It all depends on what’s there and how long the process would take. We’ve never turned down anyone for a pre-approval, so if you contact us, we can outline a plan to repair your credit.
With all these programs available, your first step should be to get in touch with a local Realtor. They’ll point you in the direction of reputable lenders who’ll know what will suit your home buying needs.
If you have any questions about this topic, don’t hesitate to call or email Sherlin Realty. We’d love to help you.