By: Jerika P – i-Lead Realty Social Media Manager
Most people strive to have the experience of owning their own home; however, this can be difficult for those with bad credit. Fortunately, there are several ways to buy a home with bad credit. With dedication and persistence, one can become a homeowner even with a bad credit score.
1. Check credit report and score
Knowing where the individual stands financially is the first step in being able to address the issue. Additionally, many credit bureaus allow those with poor credit to dispute errors on their credit report, which could help to improve the individual’s credit score. It is also essential to understand how adverse events in one’s past can affect their credit score. For instance, bankruptcy, tax delinquency and being habitually late with credit card payments are all known to influence one’s credit score.
2. Become knowledgeable in loan programs that are available to those with lower credit scores
For example, FHA, VA, and US Department of Agriculture home loan programs are all programs that can be easier for an individual with bad credit to use to purchase a home. These programs often require less of a down payment, thus making it easier for an individual to get a loan. It is also essential to plan out the budgeting for a home in advance, as this is a critical factor in obtaining a solid loan.
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Not sure if you want or need to use a realtor? Here are 4 reasons why you should. Watch the video here