How to Get a Home With a Low FICO Score
Mortgage lenders used to provide sub prime home loans to borrowers with very low credit scores. In 2010, lenders are more cautious, and they only provide mortgages to people who demonstrate credit worthiness. According to the Home Loan Learning Center, a score of 680 or higher helps you get a mortgage. But for individuals with a low credit score, FHA home loans are the way to go. You can get a mortgage with a recent bankruptcy or foreclosure, and you can acquire a loan with a score as low as 620.
Other People Are Reading
Instructions
-
-
1
Wait 24 or 36 months after serious credit issues before applying for a home loan. FHA mortgages impose waiting periods after bankruptcies and foreclosures. The standard waiting period after a foreclosure is three years, and two years after a bankruptcy discharge.
-
2
Reign in spending and start saving. Begin brainstorming ways to acquire a down payment for your FHA home loan. These loans require less than 5 percent of the sale price. Save money by eating out less, postponing vacations and stopping needless spending. Withdraw cash from savings or acquire a gift from family.
-
-
3
Pay bills on time. You don't need perfect credit for FHA home loans; however, these lenders place great emphasis on timely payments. Make credit card and other loan payments on time every month.
-
4
Stick with your employer. Do not switch jobs or fields if planning on purchasing a home with an FHA mortgage lender. Two years of steady employment helps you get a mortgage. If you must change employers, remain in the same field.
-
5
Look for a home that you can afford. FHA mortgage lenders will not accept your application if you seek a home that's beyond your means. The amount spent on your mortgage payment each month cannot exceed 30 percent of your gross monthly income.
-
1
