Unexpected expenses are just that. And, unless you went on the surprise vacation of a lifetime, typically—they are also unwanted. Maybe you bought a car this year because…well, it was time. It could be you paid a high health insurance deductible for a recent surgery. The scenarios are endless but, in any case, the money you tucked away for a down payment on a home is now depleted.
Perhaps you’ve also struggled to pay bills on time in recent years, in between jobs, and now, those late payments dot your credit report with a rating that is less than appealing to lenders. Maybe, you’ve even had to declare bankruptcy.
These are all obstacles when it comes to being approved for a mortgage, but they aren’t insurmountable, if homeownership is your goal.
Finding a good solution.
Don’t give up! As we touched on above, borrowers with less-than-attractive credit scores, and who don’t have the funds to make a 20% down payment, still have options.
Other options for those with low credit scores.
If you have a low credit rating, there are steps you can take if you are focused on a conventional home loan. Here are a few:
A final thought.
“Whether it’s a low credit rating, a lack of funds for a down payment or something else, the place to start is with a mortgage loan officer. They can help you determine the best solution when it comes to applying for a home loan,” added LaFollette. “FNBO will be a partner with you on this journey. Finding solutions is what we do best.”
Got questions? Start the process here or stop by an FNBO branch today!
The articles in this blog are for informational purposes only and not intended to provide specific advice or recommendations. When making decisions about your financial situation, consult a financial professional for advice. Articles are not regularly updated, and information may become outdated.