Are you in that stage of life where it is time to purchase a home and you have all ducks in a row except for the fact that no one will give you a mortgage? Even if you have enough saved up for your down payment, closing cost, and have fallen in love with a home…you still need to qualify for a mortgage! A lot of people have this problem because of a very low credit score. First off, we want to remind you that you are not alone in this! There are many people who are in the same boat as you. Do not give up because there is hope for you…it is possible with some preparation! It could take up to two years (or more) for you to be in the position to make it happen.
One way to forgo the mortgage route is to work very hard to save up enough money to pay for a starter home in cash. We understand that this may not be completely feasible…but, there is hope! If you purchase a home at a time the housing market is very low, it may be possible. In the long run, it may even wind up working out great for you because you will not be in any debt whatsoever.
If you are a first time homebuyer, the Federal Housing Administration has a loan option for you. The government backs the loan so lenders are not put at risk. The Federal Housing Administration loan has two main qualifications. The first is to have a minimum basic credit score of 580. This requirement is much lower than others. Also, with time to prepare, you have the ability to get your credit score to this position! The second qualification is to have a minimum of at least two years of employment that can be verified.
We hope we were able to shed some light and give you hope that it is possible to qualify for a loan without qualifying for a conventional mortgage!