If you have bad credit but want to purchase a home, you have options for how to move forward.
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Are you trying to get a mortgage, but you have bad credit? Well, that’s not a problem anymore if you’re trying to get a home. Today I’d like to discuss some of the potential solutions for you.
First, let’s review the basic options you have:

• Conventional loan
• FHA loan
• VA loans
• USDA loans

Now, a credit score of 640 is usually required for one of those mainstream loans, with one exception: FHA loans. I’ve heard of some programs where you can get qualified with a score as low as 600. Otherwise, a credit score of 740 is going to get you the prime interest rates.
If you do have bad credit, where do you start?

It’s usually best to get your finances in order before purchasing a home.
I’d recommend contacting a local lender. If you reach out to us, we’d be happy to let you know who we work with here in town. They’ll be able to walk you through some credit counseling to help you improve your score as quickly as possible.
There are also credit repair companies that will help with the process, but you need to make sure that they’re reputable companies; some will just take your money. The general cost for credit repair is between $100 and $200—if they charge more than that, it’s probably not worth it.
Otherwise, if you have bad credit and are trying to buy a home, you can also ask family members for a cash gift for your down payment. You could even have them cosign on a loan, which I don’t often recommend, but it is an option. Keep in mind, however, that it’s usually best to get your finances in order before purchasing a home.
If you have any questions, please feel free to reach out to us. We’d be glad to help.