Mortgage Options for People with Below Average Credit

When your credit score is low, your borrowing options are limited. But there is hope for your homebuying dream. Don’t get overwhelmed. There are programs available and people willing to help you.

Can I Get Approved for a Loan With Below Average Credit?

There are still opportunities and options available to individual’s with below average credit. Many programs have built in accommodations that cater to those who may little to no credit built or have had credit struggles in the past. While these programs do still assess the risk level of borrowing money to potential homebuyers, they have more lenient guidelines that won’t keep people with less-than-perfect credit from purchasing a home.

What Mortgage Loan Programs Allow for Below Average Credit?

The federal government has multiple loan options, such as an FHA, VA or USDA loans that are available to homebuyers with lower credit scores. 

It is important for borrowers to understand their credit history before applying for a home loan regardless of your credit score or history- good or bad. Many sites offer access to free credit reports that you pull on your own to review and get a better idea of where you credit stands.

A local loan officer will be your best source to identify the options in your area and how you might qualify. In addition to helping you determine the root of your bad credit, loan officers can work with you to help you understand habits that might help your credit rating improve. (For instance, holding balances on too many credit cards can hurt you credit.) 

In some cases, a higher down payment or more reserves can serve as a compensating factor when you have a poor credit score. 

Want to get started now? Complete our Quick Start Form and we’ll connect you with a loan officer that matches your specific needs. They’ll provide a free consultation and guide you through every step of the loan application process.