Do I Need Good Credit to Buy a Home?

Credit is of course on of the main factors when applying for a mortgage to purchase a home.  Having good credit will give you the best opportunity for the best rate and terms. 

However, there are many programs in place now that would allow you to obtain a mortgage for a home even if you have challenging credit or have had discrepancies in the past. 

With these programs you can get a mortgage with a credit score as low as 530, and even as low as 500, if you can provide the down payment. 


Programs that will you give you an opportunity to buy a home


An FHA loan will provide the buyer with the opportunity to obtain a mortgage with challenging credit and still allows you put as little as 3.5% percent down for your down payment. 

 VA Loan

A VA Loan program is for veterans!  Veterans can obtain a mortgage with a 500 credit score and recent bankruptcy's. The VA Loan also allows veterans to get into a home with zero down. 

 Reverse Mortgage

A Reverse mortgage is set up for anyone over the age of 62.  A reverse mortgage gives you the opportunity to obtain a mortgage for home and you are not required to make monthly payments.  If you have challenging credit and are on a fixed income, the Reverse Mortgage may be of help to you. 


Having good credit is definatly a plus and will give you the best opportunity for obtaining a low interest mortgage.  However, the answer to the question "Do I need good credit to buy a house?" is absolutely not!  


Information provided by:

Timothy L. Lopez

Branch Manager/Sr. Loan Officer