Can I Buy A Home With A Low Credit Score?
If you have bad credit and you’re nervous that you won’t be able to be approved when applying for a mortgage, don’t worry just yet. You could still be able to get a mortgage with a low credit score. It will depend on a few components. Before talking yourself out of applying, talk to a mortgage lender at First Ohio Home Finance to see what possible options are. We’re here to help you find solutions and help you achieve the dream of homeownership.
Low Credit Score Loan Options
Although you might have a low credit score, there are still options for buying a home. Among other qualification requirements such as income, down payment, and employment status, mortgage loans have credit score requirements. The minimum credit score you’ll need depends on the type of loan. For instance, the minimum credit score required for a conventional loan is 620. On the other hand, you can qualify for an FHA loan if your credit score is above 580. So if your credit score is lower, your best bet may be applying for an FHA loan. It’s important to remember that different lenders could have different requirements based on other factors such as your down payment amount or income.
Take This Quiz to see if you are eligible for FHA.
Improving Your Credit Score
There are some steps you can take now to start on the path to better credit.
- Pay your bills on time
- Pay off as much debt as possible
- Eliminate old credit card balances
- Limit credit applications
- Fix your credit utilization ratio
Be sure to check your credit score regularly to make sure there are no mistakes or possible fraud incidents that could affect your credit score. It’s also important to not close any lines of credit. The could impact your credit score negatively.
At First Ohio Home Finance, we’re here to answer all your questions about the mortgage application process and offer advice. Contact our office today to get started!
