From Bad Credit to Homeowner: A 6-Step Guide to Buying a House

Buying a home is integral to the “American Dream,” but it is increasingly out of reach for many hard-working adults.

A competitive market doesn’t mean it’s impossible to own a home – even if you have bad credit.


learn how with this 6-Step Guide for Buying  a Home With Bad Credit


Get Your Free Credit Report

The last thing you want is your credit score to be misreported.  You can get a copy of your credit report for free every year. Review all of the information provided.


Do What You Can To Raise Your Score

Unless you’re in a rush to buy a home immediately, take some time to improve your credit score as much as you can.


Talk to a Professional

Go talk to a Department of Housing and Urban Development (HUD)-approved housing counselor. They’ll get to know you and your situation, so they’ll be able to find local options that suit you.


Enroll in a Homebuyers Workshop

Once the course is complete, you’ll get a certificate you can use when you apply for financing.


Look For  FHA Loans

Federal Housing Administration (FHA) loans are the best option for someone with poor credit. The loan won’t come directly from the FHA but through an approved, private lender.


Try To Get Pre-approved

Getting pre-approved for a mortgage makes you a much more attractive buyer to whoever is selling the home.

Keep 3 main goals in mind as you move forward in your house-hunting journey: save up for a down payment, track your credit, and work with a professional.