Sometimes people decide to buy the first home when they have quite bad financial situation. As your credit score is a determining factor of an interest rate you will get, you have rather restricted mortgage options. By the way, do you know the seven habits helping maintain a perfect credit score?
For you buying a home with less-than-perfect credit you should consider the following variants:
- Federal Housing Administration in the US can provide loan insurance assuming the risk of your default. Your previous payment history doesn’t matter much, as the lending organization doesn’t pay attention to your possible foreclosure or bankruptcy. You just need to confirm your financial stability now.
- Asking a friend to become a cosigner on the mortgage.
- Searching for a private lender who is ready to take a risk. Mind that you will be offered to pay higher interest rate.
In most cases purchasing the first house is a responsible step, so you should better improve your credit score at first. In case you have no time, you should carefully choose the right type of the mortgage.