Can You Buy a House With Poor Credit?

Dated: September 20 2019

Views: 143

If you're interested in buying a home for sale in Vero Beach, you probably already know that the higher your credit score is, the better rates you'll qualify to get.

But can you buy a house with bad credit?

Here's what you need to know.

Can You Buy a House With Poor Credit?

Sometimes mortgage lenders will deny you outright if your credit score isn't high enough. That can put your dream of home ownership on the back burner fast - but in some cases, it is possible to buy a house with poor credit.

Naturally, you should try to boost your credit score as much as you can before you apply for a mortgage. But to understand the impact your hard work will have, it's important that you know about FICO credit score ranges.

FICO Credit Score Ranges

FICO provides these credit score ranges.

  • 800 or higher: Exceptional credit
  • 740 to 800: Very good credit
  • 670 to 740: Good credit
  • 580 to 670: Fair credit
  • Under 580: Poor credit

Mortgage Credit Requirements

Most mortgage programs have minimum credit score requirements. The minimum required score for conventional loan programs is typically 620 - but the FHA loan program allows you to buy a home with a credit score of 580.

Can You Improve Your Credit Score?

You should always take steps to improve your credit score before you buy a home. Plan to talk to a financial adviser for specific advice, but in the meantime:

  • Pay down your balances
  • Don't open any new lines of credit
  • Don't be late on any credit payments
Blog author image

Chip Boyer

Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....

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