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Buying a House with Bad Credit

By
Real Estate Agent with SpringsHomes

Credit issues are the primary reason we get from prospects that don't think they can buy a house. Sometimes this comes in the form of bad credit other times its bankruptcy or a foreclosure in their past. Unfortunately for these people credit issues have also become a barrier when it comes to finding a good rental. So, for people that are interested and controlling where they live, fixing credit needs to be a priority.

Private money lenders are an option for some people but with high-interest rates and short loan terms, this kind of resource should be used only as a last resort. If you do choose to borrow from a private money lender make sure to look for things like google reviews and better business bureau ratings.

Ideally, prospective buyers with credit issues should look that improving their credit, cleaning up their credit report and working to qualify for an FHA loan. With a little knowledge, work and patience people can get on the fast track to home ownership. Here is an article that outlines the essential steps for buying a house with bad credit

Stacie Streets
Fairway Independent Mortgage Company - Colorado Springs, CO
Mortgage Ninja!!

Joe Boylan good advise.  There has been a lessening of restrictions on credit qualifying lately that could signal good news for those prospective buyers that thought they couldn't qualify. There are some options out there for borrowers with a 580 (FHA is one, but only select lenders even offer this option) but 600-620 is still the baseline for the majority of lenders.  VA offers more lenient terms where a low FICO score can be offset with other compensating factors such as assets and low DTI.  I have suggested to all my realtor partners to go back through their database to see if there were some borrowers that were just below the old credit score guidelines for qualifying to see if with these new, lower FICO requirements allow for qualification now. It could be a lot of recaptured revenue!!

Jul 10, 2017 03:00 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Many potential home buyers are 3 to 6 months away from repairing their credit and qualifying for a home. They need a good mortgage broker and a caring Realtor who will guide them through the process.

Aug 31, 2017 01:00 PM