3 Home Loans That Allow You to Buy a House with 580 Credit Score in Houston

Do you want to buy a home? Great news! Buying a home is one of the long-cherished dreams of Americans. But lack of finance often restricts them from realizing their dreams. Are you also facing the same issue? Opt for the home loan programs for the required finance and buy a home of your dream. 

Wondering how to buy a home as your credit score is not up-to-the-mark? Well, not to worry. As your credit score bears the record of your creditworthiness, lenders prefer to offer the loan approval to the ones, who have a great credit score. However, that does not mean that it is not possible for buying a house with 580 credit score in Houston. You can come with decent down payment, look for different lenders, or come with a co-signer for getting loan approval with a low credit score. 

Besides, you can go for any of the loan programs as it needs lower credit requirements – 

  • FHA home loans 

FHA home loans are one of the ideal options for you when you want to get a home loan with a lower credit score. Insured by the Federal Housing Administration and offered by the FHA-approved lender, this loan is specially designed for first-time home buyers. As the FHA backed the loan program, it has a lenient requirement for credit score and down payment. One can get the approval with as low as 500 credit score and 3.5% credit score. So, you can easily get approval with a 500 credit score. Check the eligibility and if you can meet it, opt for this loan.

  • VA home loans 

It is another great home loan option for home buyers. But only veterans, military officers, or their surviving spouses can benefit from this. It is insured by the United States Department of Veterans Affairs (VA) and offered by the mortgage lenders. The VA does not offer any requirement for a credit score, it is determined by the lenders, who offer it. But as the VA insured the loan, the lenders offer some relaxation when it comes to credit score requirement, and as a result, a borrower like you can qualify for this with a low credit score. 

  • USDA home loans 

These loans are issued through the USDA loan program, also familiar as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture. USDA home loans are zero down payment mortgages for eligible rural and suburban homebuyers. This loan is also approved with a 580 credit score. But keep this in mind, being a borrower, you will be calculated very carefully for having a low credit score. 

These are some of the loan programs that you can qualify for despite having low credit scores. You can qualify for these loans when you can fulfill other eligibility criteria. And to go the extra mile, start working on your credit score. With an improved credit score, you can eligible for other home loan programs too. 

Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.