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How To Buy a House With Bad Credit

Buying a home is integral to the “American Dream,” but it is  increasingly out of reach for many hard-working adults.

Despite their pessimism, a competitive market doesn’t mean it’s impossible to own a home – even if you have bad credit. Here's a step-by-step guide in buying a house with low credit.

Step One: Get Your Free Credit Report

The last thing you want is your credit score to be misreported. Go to annualcreditreport.com – you can get a copy of your credit report for free  every year.

Step Two: Do What You Can To Raise Your Score

Unless you’re in a rush to buy a home immediately, take some time to improve your credit score as much as you can.

Step Three: Talk To A Professional

The best person to go to is a Department of Housing and Urban Development (HUD)-approved housing counselor.

Step Four: Enroll In A Homebuyers Workshop

If you can get into a course locally, it should be free. You can also do it online at your own pace.

Step Five: Look For Fha Loans

As mentioned earlier, Federal Housing Administration (FHA) loans are the best option for someone with poor credit.

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