How to Get the First Time Home Buyer Programs with Low Credit Scores in Houston?
A first-time homebuyer or someone, who has not owned a home in the last three years? Then, FHA home loans will be the right choice for you. Designed for low to medium-income group buyers, this home loan is backed by the Federal Housing Administration and offered by the FHA-approved lenders.
Although this loan has lenient requirements, you may keep wondering how to get approval for first-time home buyer programs with low credit scores in Houston, TX. Well, focus on these things and get approval.
- Come with a decent down payment
A down payment is an amount that you have to pay when you buy something on credit. It applies to a home loan program too. Generally, the lowest down payment that you have to pay to get approval for an FHA loan program is 3.5%. But when your credit score is lower than the average one, you need to come with a hefty down payment to ensure the loan approval. The higher the amount you can come with the better it would be for you. As an FHA allows down payment as a gift from your family members or members, you can go for this. Besides, you can choose a down payment assistance program to come with the down payment amount. It can help you a lot. Anyway, you should try to come with a hefty amount.
- Prepare to pay high mortgage rates
Another thing that can help you to get an FHA loan with a low credit score is the mortgage rate. It is the rate that you have to pay over the life of the loan. Lenders ask for high mortgage rates from the home buyers, who want to get approval with a low credit score. Though with a high mortgage rate, you have to pay a higher amount over the life of the loan, it can help you to ensure approval from the lender. So, you can consider this option too.
- Shop for mortgage lenders
The FHA home approval requirements are set by the FHA-approved lenders, so it varies from lenders to lenders. While one lender asks for a high credit score and down payment for approving the loan program, another one may ask for a lenient requirement. Without asking several lenders, it may be difficult for you to understand. So, instead of opting for one lender, ask for quotes from several lenders, compare the rates, and then choose the one, who will suitable for you.
So, come with a hefty down payment amount, be ready to give a good interest rate, and shop for mortgage lenders to get an FHA loan approval with a low credit score.