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.
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