{"id":5020,"date":"2023-05-23T06:11:37","date_gmt":"2023-05-23T10:11:37","guid":{"rendered":"https:\/\/fhalenders.com\/?p=5020"},"modified":"2023-05-23T20:19:29","modified_gmt":"2023-05-24T00:19:29","slug":"first-time-home-buyers-with-bad-credit","status":"publish","type":"post","link":"https:\/\/fhalenders.com\/first-time-home-buyers-with-bad-credit\/","title":{"rendered":"First Time Home Buyers with Bad Credit – Pre approvals"},"content":{"rendered":"

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First Time Home Buyers With Bad Credit<\/span><\/h2>\n

Many home buyers face various challenges when purchasing their first home. Some of these challenges include low income, no down payment and bad credit.<\/span><\/p>\n

First time home buyers with bad credit can qualify for a mortgage if they can meet the other basic loan requirements. There are programs available for individuals with bad credit who want to purchase their first home.<\/span><\/p>\n

First Time Home Buyer Bad Credit Mortgage<\/span><\/h2>\n

There is still home if you are a first time home buyer and a lender turned you down because of your credit scores. It is true that conventional guidelines require credit scores of at least 620 and no lender is permitted to go lower than that for a conventional loan. However, you do have other options.<\/span><\/p>\n

FHA Loan with Bad Credit<\/strong><\/span><\/p>\n

An FHA loan is the most popular loan program for first time home buyers because the guidelines are the most flexible and you can stretch your income to purchase a more expensive home.<\/span><\/p>\n

FHA loans are extremely forgiving when it comes to credit score requirements. The guidelines permit first time home buyers to have credit scores as low as 580 and still have a down payment of only 3.5%.<\/span><\/p>\n

You can also have scores between 500-579 and qualify for an FHA loan but with a 10% down payment.<\/span><\/p>\n

Contact us to get a quote<\/span><\/strong><\/a><\/p>\n

VA Loan with Bad Credit<\/strong><\/span><\/p>\n

VA loans are for active military and military veterans who have VA loan eligibility<\/a>. One of the major benefits of a VA loan is there is no down payment requirement.<\/span><\/p>\n

VA loans also do not have a specific minimum credit score as per the VA loan requirements. However, virtually all lenders have implemented their own credit score requirements which is why they often tell veterans they are not eligible due to low credit scores.<\/span><\/p>\n

There are lenders who are willing to accept low credit scores for a VA loan but they are not easy to find.<\/span><\/p>\n

USDA Loan with Bad Credit<\/strong><\/span><\/p>\n

USDA loans are for the purchase of a primary residence that is located in a rural area as designated by the USDA. This loan program also does not have a down payment requirement.<\/span><\/p>\n

Similar to VA loans, USDA loans also do not have a minimum credit score requirement. The lenders who offer USDA loans all have self imposed credit score minimums.<\/span><\/p>\n

In addition, USDA loans also have income limits to prevent high income earners from taking advantage of the zero down mortgage program.<\/span><\/p>\n