Yes, You Can Get a Mortgage With a Low Credit Score

What Counts as “Low Credit” Anyway?

First, let’s debunk the home-buying myth that you have to have a gold-plated credit score to buy a house. Lenders review your whole financial picture. If you have a steady income, a regular payment history, and some cash in hand, that will help balance your less-than-perfect credit.

 

How Does Your Credit Score Affect Interest Rates?

You may pay more in the form of a larger down payment, a higher interest rate, private mortgage insurance, or points, which are fees attached to the loan.

How much more interest might you pay? Let’s say you’re going for a $216,000, 30-year, fixed-rate mortgage. Here’s how your rate could change based on your score. (FYI, the monthly payment estimate includes only interest and your principal, not insurance, taxes, private mortgage insurance, or other expenses.) Rates here may not reflect current conditions.

You can improve your credit pretty easily. There are local professionals who can help clean up your credit easily with targeted strategies. If you are looking to enhance your credit rating, check out Steven Burman and his 7 steps to improve your credit score

Get the report on how to get a mortgage with a Little Credit

 

 

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About the author

Michael Mahoney

Michael Mahoney

Boston Realtor

Michael Mahoney is a full time Realtor in Boston, Massachusetts. Michael covers most of Greater Boston. Michael's focus areas are primarily Norfolk and Suffolk Counties. You can reach Michael via email at mike@mmahoney.com or via phone at 617-615-9435. Michael is a sales agent affiliated with Century 21.

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