HUD, or the federal Department of Housing and Urban Development, oversees the Fair Housing Act. HUD is responsible for ensuring, among other things, that low-income families are afforded the opportunity to become homeowners. Often, low income families have less than perfect credit, which can make it difficult to get a home loan. You can buy a house through HUD with bad credit if you are diligent in your efforts
Determine how much home you can afford to spend each month on a mortgage. Before you tackle the issue of your credit, use the Ginnie Mae home ownership calculator to determine how much of a mortgage payment you can afford to make. Find a link in the Resources section. You should not attempt to purchase something you can't afford; ultimately, you could worsen your credit and possibly lose your home.
Apply for a federal mortgage loan with help from the HUD website. You can apply directly with a lender approved by the Federal Housing Administration, or you can speak with a HUD housing counselor. The HUD counselor can help you by showing you the best options available for you based on your credit situation. You can find a listing of FHA lenders based on the criteria you specify or you can contact a housing counselor by using information provided by HUD on their website.
Research government options. The government offers different programs for different circumstances, such as home ownership programs through the Veterans Administration or Department of Agriculture. If you are a candidate for either of these programs, visit the agencies' websites for details on how to apply and what is required.
- Photo Credit Jupiterimages/Pixland/Getty Images
Can I Prequalify for a HUD Loan?
You can prequalify for loan assistance with the U.S. Department of Housing and Urban Development. When you work with HUD to obtain...
How to Buy a House With Bad Credit in Texas
You can buy a house in Texas with bad credit by cleaning up your credit report and improving your credit score as...
How to Buy a House With Little Money Down & Bad Credit
Purchasing a home with little down and bad credit will require that you find a lender with liberal lending policies. The task...
5 Things to Know Before Buying a House
Understanding the many tasks involved in buying a home takes the right preparation and guidance. Third parties can help you get the...