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4 Key Hacks to Get Home Loans for Bad Credit Scores in Houston, TX


Do you want to apply for a home loan program with a low credit score? Then, you should follow these hacks.

Checked your credit score from three major credit bureaus before applying for a home loan and found that it is quite low? Wondering what to do? Well, it is a bit difficult to get approval for a home loan with a low credit score but it is not impossible.

Opt for the lenders who offer home loans for low credit scores in Houston, TX. But how to ensure home loans with a low credit score. Here are a few hacks to follow -

·         Come with a high down payment

An excellent way to ensure a low credit home loan is to come with a good down payment. When you come with a hefty down payment amount, you will need to borrow less. And lenders prefer the borrowers who want to borrow less than the ones who want o borrow much. So, put all your efforts together to come with a decent down payment. You can ask for gift money from your dear ones or look for down payment assistance programs. All these will help you to arrange a hefty down payment for your home loan.

·         Shop around for lenders

There is no fixed requirement for a home loan program. The loan requirements vary from a lender to another one. While a lender asks for a high credit score, another one may give some relaxation. Without shopping around and comparing quotes, it would be hard for you to understand who is asking for a high credit score while others not. So, in place of choosing the very first mortgage lender you come in contact with, ask for quotes from different lenders, compare them, and finally pick the one that will the most suitable for you.

·         Look for several home loan programs

The credit requirement also varies from a home loan program to another one. While conventional loans need a decent credit score for approval, the requirement is different for FHA or VA loan programs. Insured by the Federal Housing Administration and designed for first-time homebuyers, FHA loans require a minimum 500 credit score. VA loans that are particularly designed for veterans or military duty officers also do not have a high credit requirement. So, instead of opting for conventional home loans, you can consider these home loan programs when your credit score is low.

·         Arrange a co-signer for your loan

Do you have a helpful family member or relative with a high credit score? Great! Ask him or her to work as your co-signer. A low credit homebuyer can get loan approval easily when he or she comes with a high credit score co-signer. But keep this in mind that the person would be responsible for the repayment of the entire debt. So, be careful when convincing one to work as your co-signer.

So, do the needful things before applying for a home loan with a low credit score and ensure approval from the lender.

 

Joan Galardo

author

Residential Commercial Mortgage Loan Originator at Clear Lending.

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