There’s a Way to Buy a Home with Bad Credit
Bad Credit doesn’t stop you from buying a home. While many people wish to uphold the American dream of becoming homeowners, the average credit score for Americans is 690 which is considered fair according to valuepenguin.com (a resource site for consumer research). That’s good considering Experian estimates that 30% of Americans have poor to bad credit. These individuals have a score ranging between 300-600 which is a little on the light side when trying to obtain a mortgage on a home. In other words, buying a home with bad credit can be done. In this week’s blog, we focus on some points that can help you buy a home even when your credit is less than perfect.
Research Both Government and Private Funding
There are several ways purchase a home even with doubtful credit scores. The first place to research would be your state and the home buying programs there. In Florida, for instance, you can learn about what’s out there by visiting www.hud.gov. This site has a plethora of information that can tailor to most people’s needs. From homeowner vouchers to HUD housing, you things can be overwhelming. We think it’s best to speak to one of the counselors to help guide you through the process and what you need to get started.
Other than what you may find by way of HUD housing, another way to obtain a loan on bad credit is through the Federal Housing Administration. These types of loans generally will require lower down payments and tend to be more flexible than a traditional lender. Be cautious as these loans aren’t always available for a given area. They are also subject to a variety of housing types and borrowing costs.
In most cases, you’ll need to obtain secondary financing for you to get your home. Check with government payment assistance programs as well as charitable organizations for down payment assistance.
Companies such as the Florida Housing Coalition who is a non-profit organization can make a huge difference when trying to obtain housing. Some of their programs include the predevelopment loan process and can help with home appraisals as impact and permit fees. Another area they often help with is refinancing for people who have suffer hardships. Be sure to visit their website to learn more about what they do at apps. Floridahousing.org.
We hope these resources will prove to be useful to you. However, if you’d like to find out more about our programs for low to middle-income loans, contact us directly. We look forward to speaking with you.
Buying a Home with Bad Credit Can Be Done.