How To Buy A House With Bad Credit This Year

Buying a home is increasingly out of reach for many hard- working adults.

About a third of consumers have a poor or fair credit score. If you fall in that category, don’t give up on homeownership. Some loans cater specifically to Americans with low scores.

A traditional mortgage is usually a fixed-rate loan, so the interest rate never changes. It’s only ideal for people with a credit score  above 620.

If you have a score as low as 500, you could qualify for a Federal Housing Administration (FHA) loan.

Your local HUD office should be able to find the best option in your area. Make sure you have enough funds to cover the down payment and the mortgage insurance fee.

Getting pre-approved for a mortgage also makes you a much more attractive buyer to whoever is selling the home. This is an excellent leg-up, especially in a competitive market like we see today.