Can I Buy A Home With Bad Credit or Do I Need to Lease?
Do not fear you may still be able to own a home just not as soon as you thought possible. Unfortunately the lending i
nstitutions have tightened their minimum credit score requirements. If you are looking for a conventional loan as an owner occupied borrower you must have a credit score of 620 or above. On Government loans such as FHA or VA your score must be 620 or greater. Even though FHA will allow lower credit scores the actual lending institution have raised their bar and require a minimum score of 620 this is due to all of the recent foreclosures stemming from a high number of subprime bank loan foreclosures.
What can I do if my score is just below 620?
The first things you will want to do if you are right at the 620 mark are contact a lender who can pull a tri-merge residential credit report then review it for scores and accuracy. I always suggest getting with a credit advisor, loan officer and Realtor who are well versed in credit and the real estate market as your real estate “Know How” team. We will all work together to get you prepared to purchase now or in the next 6 to 9 months.
My score is well below 620, it’s in the low 500’s or 400’s what can I buy or do?
Severely damaged credit may take much greater work. In the meantime you can follow the same formula above but be aware it will require more time, effort and money to repair severely damaged credit. If you choose to go it alone which I do not think is always the wisest thing, it may require much greater time and effort to find out and understand the laws concerning credit and credit disputes. You may save a little money but in the end you will possible have greater frustrations and spend a lot of your precious time doing something you could have paid an expert to do for you. In the meantime there are other options to purchase such as lease option, contract for deeds or renting a less expensive home, town-home, condo or apartment while you work on your credit situation. The less expensive dwelling will free up some cash flow to work on paying down items or paying the fee of the credit repair service that will assist in improving and removing disputed items on your credit.
How do I find a less expensive dwelling with severely damaged credit?
Well this is where your Realtor Expert comes in… Most buyers or tenants are not aware that they can have a Realtor locate houses, town-homes and condos to buy, rent or seller finance at “No Charge” to you the buyer or tenant. On most every transaction (but not all) the seller or owner pay’s the commission. So why not use a Realtors service to locate the properties, do all the leg work, and do all the legal paper work while representing
your best interest? If you are not in a position to purchase right now, and you are willing to commit to a 6 or 12 months lease while working with us to improve your credit scores so you can purchase your very own home of your own. It can be done more times than not.
I truly believe with all my heart that my job is not just selling real estate; it’s helping each person who comes to me to find a dwelling. No matter if it’s for a purchase, lease with option, owner finance or renting an apartment. Everyone has a right to have a place to call home, so all that is in my power that is in fused in me from the one above I will do my very best to find you the perfect place to call HOME!
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