Have you checked your credit score lately and slowly backed away from it? Credit scores can make or break your chances of getting approved to purchase a new home. If your credit score isn’t in the range of perfect—somewhere in the 700s—fear not! Even if your credit lies somewhere in the 600s, there are still a few ways to get approved.
Before diving in to some of your best options, you may be asking—“Why not just go through my bank or a mortgage broker?” This is a valid option, but be wary. Banks have set overlays as an answer to low credit, meaning it will be difficult for you to move forward in buying a home. Alongside this, pricing bumps and a higher interest rate often accompany these overlays. Naturally, you don’t want to fork out more money than necessary, right? Here are some avenues to look into so you aren’t spending more than you need to:
The Federal Housing Administration (FHA) is a great option if your credit score is lower than you’d like. Lenders trust these loans because they’re 100% ensured by HUD, the Department of Housing and Urban Development. Because of that insurance, lenders are more willing to allow people with less-than-perfect credit.
The VA loan is another great option if your credit is not so great; However, it is restricted to Active Duty Military or Veterans. With this program, you can buy a home with zero money down as well as even take cash out with rates much lower than the conventional loans. (Special note: The VA loan has no mortgage insurance which is just another savings monthly).
Caliber Home Loans
Ultimately, finding a lender that doesn’t have road blocks is pretty important. With Caliber, low credit doesn’t have to mean a higher interest rate. In fact, they don’t have nearly as many required pricing bumps as other lenders.
If you want to figure out the very best avenue, give Rick a call. He will set you up with a Mortgage Expert Review. With this, he can look at and tweak your credit, discuss credit repair, and figure out what steps will work best for your particular financial situation. You may find that he can help boost your score and get the home you want at the same time!