How To Buy A House With Bad Credit

Posted on September 26, 2018

Having bad credit can sometimes feel like a catch-22. You want to buy a home and pay your mortgage instead of handing over a rent check each month and not helping your credit at all, and yet you can’t do so because you have bad credit!

It’s a vicious cycle, and it leaves many potential homebuyers feeling discouraged and desperate. Especially here in California where rent is so pricey, your discouragement is easily justified. Milestone Financial LLC is here to help.

We offer bad credit mortgages to people in San Diego, Sacramento, and other areas of California. Read our blog today to learn how to buy a house with bad credit, and then contact us to get started on your property loan and achieving your real estate goals. We have references from other borrowers, and we’re a Top Rated Local® company in the lending, originating, and securing industry.

Analyze Your Credit Score

It’s important to know what you’re up against. Get a detailed report of your credit score and analyze it. You’ll want to check for errors in the history and get those resolved if there are any. Your credit score is impacted by your payment history, debt-to-credit utilization ratio, length of credit history, credit mix, and new credit. Figure out which aspect is hurting you the most (more often than not it’s your payment history).

Boost Your Credit Score

Now that you’ve figured out what’s the most impactful factor on your credit score report, commit to doing all you can to improve it! Go big or go home (preferably both since you’ll be getting a real estate loan to buy a home): make at least the minimum payments each month, throw a garage sale to make some extra cash, or pick up a part-time job. Even if you need to postpone the home buying process for a bit so you have an interest rate you’re more comfortable with, it’ll be worth it in the long run. It obviously won’t be enough for you to go out and buy a house tomorrow, but taking positive steps now will establish healthy habits and get you on the right track.

Increase Your Down Payment

Now that you’re boosting your credit score and saving money as best as you can, it’s time to increase your down payment. This will show real estate lenders that you’re serious and that you have the cash flow to make your mortgage payments each month — even if you have bad credit. Getting a mortgage with bad credit is hard, but it’s even harder and riskier to do with a minimal down payment.

Apply For A Bad Credit Mortgage

Whether you were able to do this after just getting started or after saving up money and paying off debts for a few months, congratulations! You’ve arrived.

Apply for a bad credit mortgage with Milestone Financial LLC. We offer some of the best loans for bad credit — we don’t even require a minimum credit score. As always, we simply recommend choosing a house and mortgage that matches your budget and helps you to feel happy and successful in the future. Contact us today to get started on getting a mortgage with bad credit.

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