A low credit score doesn’t mean that you can’t buy a home. It doesn’t mean that you have to pay a large down payment either. It even doesn’t mean that you will have a high mortgage interest rate. However, it does mean that you will have to consider getting another type of loan – a Federal Housing Administration loan!
How an FHA Loan Can Help You Buy a Home
The FHA loan is a completely secure and insured mortgage by the Federal Housing Administration. It’s the perfect loan for anyone who has a less-than-perfect credit history or someone who has a low income. The following are some more specifics about the FHA loan:
- Down payment
Your down payment only has to be 3.5 percent and you can use a cash gift for this.
- Closing costs
Don’t worry if you don’t have much savings built up. The closing costs are low if you use a FHA approved lender.
As long as you can pay the monthly mortgage payment and other debts, you qualify for this loan – even with poor credit!
- Interest rates
You’ll receive a much lower interest rate than you would on a conventional loan, even though they still do use your credit report to determine what your interest rate will be.
Live Out Your Dream of Buying a Home
Don’t let your finances get you down! Find out if you are eligible for a FHA loan here.
LendingTree is the nation's leading online loan marketplace providing consumers an easy way to shop and compare funding for life's matters. With LendingTree's marketplace, you can connect with multiple lenders that compete for your business. You can also find an array of credit based tools and tips on LendingTree, including free monthly credit scores to help you stay empowered financially.
- Your Mortgage GPS: Step-by-Step Directions for Getting a Mortgage 12,775 views
- Should You Give Out Your Social Security Number to Get a Mortgage Quote? 9,414 views
- 15 Things to Know About Your New EMV Credit Card Chip 7,646 views
- The Ultimate Credit Score Survival Guide: 45 Rules to Help Increase Your Credit Score 7,260 views
- 5 Things You Should Never Put on a Credit Card 4,669 views
- Mortgage Rates Might Fall Today – Maybe Significantly 4,240 views
- How Do You Compare Personal Loans and Get the Best Deal? 4,068 views