A Guide to Home Loan Options for Those With Lower Credit Scores

22-Apr

When buying a home in Utah there are a lot of things to consider, such as coming up with the funds for your down payment, in addition to closing fees, and your credit score. For those worried about their credit score, there are options available that can help you purchase a home with bad credit.

As one of today’s leading lenders of first-time homebuyer grants in Utah, the team from Home Savings Fund has collected a few options for those with bad credit below!

Home Loan Options for Buyers with Lower Credit

As mentioned above, a number of options exist to help first-time homebuyers whose credit might not be up to par, these include:

  • FHA Loans: For first-time homebuyers, there are loans backed by the Federal Housing Authority (FHA) that can help cover a down payment and the other fees associated with buying a home. However, there are some stipulations, one of them being that you’ll need a minimum credit score of at least 580 to qualify for such a loan and you can only use said loan to purchase a primary residence.
  • VA Loans: Another option for those looking to buy their first home is a VA loan. Of course, you can only qualify for such a loan if you’re an active-duty member of the armed forces or a veteran. These loans are provided by the Department of Veteran Affairs and often allow anyone who qualifies, or their spouse, to purchase a new home with zero down payment.
  • First-Time Homebuyer Grants: For those unable to meet their down payment needs or cover the initial fees of buying a home, or initial mortgage costs, there are first-time homebuyer grants offered by companies like Home Savings Fund. However, to qualify your loan officer or mortgage broker will need to be approved in advance, along with the realtor and title company.

Contact us today for first-time homebuyer down payment loans in Utah

In addition to the requirements for our first-time homebuyer grants mentioned above, those who are qualified will also need to attend a Home Buyers Class either in person or online, as well as work with a participating realtor or and loan officer. Home Savings fund will match up to a maximum of $7,500 on your loan. However, in order to receive the grant it’s important that all of the aforementioned things are approved by Home Savings fund beforehand. If you want to purchase a home but are struggling with credit issues or meeting your down payment costs, we can help. Contact us online today or call (855) 369-7283.