28 Jun 2022

Can You Buy A House Without Credit

Can You Buy A House Without Credit?

Buying a home without credit or bad credit can be a challenge. However, it’s not an impossible feat by any means.

When you purchase a home, you’ll want to have enough money to make a down payment and a history of paying your bills on time over the past couple of years. You will also need to meet the minimum credit score requirements of the lender.

Higher credit scores typically earn more favorable terms on loans, though it is still possible to buy a home if you have bad credit or no credit at all.

Can You Buy A House Without Credit
Can You Buy A House Without Credit

What’s The Lowest Score I Can Have To Buy A Home?

You can theoretically qualify for a mortgage with a credit score that is as low as 500. However, you will have to get a loan through the FHA and you’ll have to have a down payment of at least 10% of the home price.

If you have a credit score that is anywhere between 580 and 619, you might be able to score an FHA loan for as little as 3.5%, though you may also consider applying for a VA loan.

Opportunities typically open up when you get into the 620 to 699 range, as you’ll likely be able to apply for conventional loans that aren’t backed by the VA or FHA. Of course, the best-case scenario is when you have a credit score that is at least 700 and up.

Understanding and Improving Your Credit Score

It’s important to get rid of debt as a homebuyer. You’ll want to review your credit history and accumulate as much cash as possible before buying a home. To get a good idea of your credit, you’ll need to check your credit report.

First, you’ll want to check to see if there are any errors on your report, such as accounts that haven’t been updated or derogatory marks that don’t reflect your credit history. You can then dispute any inaccuracies or errors that you find.

Secondly, you’ll want to prioritize making on-time payments to give yourself a healthier credit score. You may also decide to use credit boosting tools, such as tradelines, to give your score that much-needed enhancement.

Tradelines, such as those found here at Boost Credit 101, have the ability to increase a user’s credit score by injecting positive credit information, such as a long history of on-time payments or a low credit utilization ratio, into the user’s credit report.

Final Thoughts

Don’t let having a bad credit score or no credit score at all ruin your dreams of one day owning a home. There are steps you can take to work towards good credit and realize your financial goals.

If you have any other questions about tradelines and what they can do for you, make sure to get in touch with us here at Boost Credit 101. We have a strong team of experts who can help guide you through the process. We look forward to helping you reach your financial goals!