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: