Buying a Home With Poor Credit

If you’re interested in buying a home but your credit isn’t quite up to par, here’s what you need to know.

Buying a Home With Bad Credit: The Waiting Periods and More

  • If you file bankruptcy, it will be on your credit report for 10 years
  • You can get better rates with a conforming loan if you wait 4 years after filing bankruptcy or having a short sale
  • FHA guidelines say you can qualify for as little as 3.5% down 2 years after a foreclosure and 3 years after a short sale

How to Improve Your Credit

You can take a few steps to improve your credit to get a conforming loan. Your first goal is to talk to a mortgage broker who specializes in helping borrowers with poor credit. Then:

  • Get a major credit card. You can choose a secured card for this purpose.
  • Keep steady employment for at least one year, but preferably two.
  • Earn a regular wage, or keep meticulous records if you’re self-employed.
  • Save up at least 10% for a down payment.
  • Avoid making payments late. Don’t fall behind!

Are You Buying a Home in Irvine?

If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for your needs (and your budget).

Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.

In the meantime, check out our: