I’m sure you’ve heard the horror stories about people who had problems trying to buy a home. Don’t fret – there are home loans for bad credit out there.
Since there are home loans with bad credit available for potential home owners, you just need to prove your ability to pay.
What exactly is a credit score?
A credit score is calculated based on the amount of debt you have accumulated, and how well you have been paying it back. Truthfully, a credit score of 650 is really close to being average to the lender.
In the U.S., good credit scores usually fall in the 690 to 720 range. Anything over 720 is considered excellent.
How can I get a home with a credit score of 650?
With so many programs on the market, a lender should be able to assist in finding you a loan you can afford.
The only thing about home loans with bad credit – the interest rate may not be as good as a loan for someone who has good or excellent credit. Over time, those percentage points add up.
Even with a score of 650, speaking to a lender would be in your best interest. Although they may be hesitant, once you prove your ability to pay, things will fall into place.
The FHA also has home loan programs that are available to individuals with scores as low as 580. For a conventional loan, the lowest is 640.
For more information on home loans for bad credit and the process for obtaining one, contact a team member at Mortgage Investors Group today.