Do you have poor credit but want to purchase a home? A low credit score is generally anything worse than 600, but you may still have trouble obtaining a loan with scores under ~700. This is where FHA loans come into play for many.
Lenders are becoming more relaxed again with credit scores and you may be able to make up for a low credit score in other parts of the qualification process.
Here are some ways you can improve your chances of obtaining a loan with bad credit…
- Have an explanation for your low score if applicable. For example, if you have a single major event that caused a poor score, you may be able to convince a lender that the score isn’t necessarily representative of your overall credit history.
- Be able to show a steady income over a long period of time.
- Save for a bigger down payment! If you can put 20% or more down, you’ll dramatically increase your chances.
For more information, check out this resource from BankRate.com –> http://www.bankrate.com/finance/credit/low-credit-score-borrowers-get-mortgage.aspx