Are you trying to get approved for a home loan but don’t have the best credit score? If so, know you’re not the first to encounter this problem! Trying to get a mortgage with a low score may not be ideal, but it’s not impossible. 

I always recommend working to improve your score before trying to buy a home. You could pay off your debt, work not to miss payments, stay away from hard inquiries, pay for deletions, etc. However, I understand that sometimes you need to buy a home now. Mortgages with lower credit scores may have higher interest rates and fees, but you can always refinance once you lower your score. 

Having a lower credit score doesn’t mean your home-buying journey is over, and a “bad” score is very subjective. There are a few things you can try to get a home loan with a lower credit score: 

1. Explore your options. Different types of loans have different minimums, so see what you qualify for. For example, FHA, VA, and USDA loans often have lower minimums than conventional loans. Also, take your time to shop around. Try multiple lenders, banks, credit unions, and more. Each organization will have different policies, so find what works best for you.

“Having a lower credit score doesn’t mean your home-buying journey is over.”

2. Find a co-signer. This person’s credit and assets will be considered with yours, boosting your chances. Of course, you’d have to find someone willing and able to take on debt that could follow. However, they will lower your debt-to-income ratio, which will help your qualification. Again, each organization will handle this differently, so look into that. 

3. Make a bigger down payment. This may not be possible for everyone, but it will help you increase your chances, show your commitment, and lower your monthly payments. Plus, there are numerous down payment assistance programs out there that could help. Overall, you will look less risky to lenders. 

Overall, just make sure you don’t give up hope if your credit score is a little lower. If you have any questions, don’t hesitate to reach out! You can call or email me anytime, and I would be happy to help you.