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Buying a House with 580 Credit Score in Houston: Check These 3 Home Loans

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The thought of buying a house can be overwhelming. And when you start the home buying process with a bad credit score, it may seem to be that it is nearly impossible to get approval for a home loan program. However, do you know there are things like bad credit home loans? And with this, your credit might not be as much of a roadblock as you think.

Therefore, buying a house with 580 credit score in Houston will not be impossible for you. Don’t you have previous experience of applying for a home loan program? Wondering what are the home loans you can apply for? Here are the loans –

  1. FHA loans

An FHA is a specially designed home loan program for first-time homebuyers or for the ones who haven’t purchased a home in the last 3 years. This loan is backed or guaranteed by the Federal Housing Administration and offered by the FHA-approved mortgage lenders. As the loan has lenient qualification requirements, homebuyers prefer to opt for this loan. The minimum credit requirement for this loan is 500. So, it is the ideal choice for low credit score homebuyers. However, as the credit requirement varies from lenders to lenders, you should ask for quotes from different lenders, compare these and then choose the lender who offers the loan at the lowest credit score. FHA loans also have additional requirements that must be met for you to qualify for the loan.

  1. VA loans

If you are a veteran, military officer, or surviving spouse and want to buy a home with the help of a home loan program, then a VA loan will be the perfect choice for you. This loan is backed by the United States Department of Veterans Affairs and offered by lenders. With this loan, you can buy a home with $0 down. Just like FHA loans, your home has to meet specific standards to qualify. And the most important thing is that one can get approval with a low credit score. So, it will be another great home loan option for you.

  1. USDA loans

Last but not the least, you can also opt for USDA loans. This loan is backed by a government department, the U.S. Department of Agriculture, and offered by the mortgage lenders. If you are a low to medium-income group person and want to buy a home in a rural area, then it will be the best loan option for you. A loan from the USDA allows you to purchase a home in a qualifying rural area with a $0 down payment and a low credit score. Besides, there are some income requirements that you need to fulfill.

So, if your credit score is 580 or below 580 and you want to buy a home with the help of a home loan program, then you can opt for FHA, VA, or USDA home loan programs. And if you take steps to improve your credit score, then you can also get approval for a conventional home loan program. Think and work accordingly.

 

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