Can I participate in first time home buyer programs with bad credit?
Many Americans who are looking to buy their first house worry that they will not qualify for first time home buyer programs with bad credit. However, there are options for prospective buyers with low credit scores.
In fact, being a first-time home buyer can make it easier to obtain a mortgage with reasonable terms and rates than it would be for an experienced home buyer.
First time home buyer government programs can offer new home buyers better rates for their low credit scores than conventional home-buying programs and lenders.
For instance, borrowers with credit score of 580 or more qualify for a 3.5 percent down payment with the FHA. Those with even lower scores can still qualify as long if they pay a 10 percent down payment.
Another option that residents with bad credit have is to improve their credit before seeking out mortgage loans. A higher credit score will enable mortgage applicants to qualify for better rates and terms. As a result, they may end paying less over the length of their loan.
While the decision is ultimately up to the home buyers, it is important to remember that a home is a large financial investment and should be carefully considered.