Can I Buy a House with a 500 Credit Score?
Credit scores play a role when individuals attempt to obtain an array of loans including mortgages. Lenders prefer to issue mortgages to homebuyers who have a score closer to 700 than 500. Most lenders couple credit scores with the applicant’s documentation such as bank statements and payslips. The goal is to ascertain the homebuyer’s ability to repay their mortgage in full and on time.
Mortgage House is a non-bank lender. We are more likely to finance a house with a 500 credit score than banks. We also offer competitive loan terms to well-qualified homebuyers.
Individuals who have credit scores closer to 500 than 700 pose more financial risk. Nonetheless, our loan specialists will evaluate the entire application. Plus, homebuyers can take steps to improve their credit score before applying too. Paying your bills on time helps improve credit scores more than other single steps. Paying bills on time accounts for 35% of an individual’s credit score. Then, pay down revolving credit balances and avoid maxing them out.
In 2022, homebuyers have several ways to balance blemishes on their credit reports. For example, putting a 20% deposit toward the mortgage helps. In addition, they can provide collateral or bring a guarantor into the mix.
To explore your options, speak with our loan specialists at Mortgage House. You can also try our online mortgage calculator for free.
Purchase a House with a 500 Credit Score Conclusion
Mortgage House is among the lenders that can finance houses with a 500 credit score. You can apply for our Mortgage House bad credit home loan. Contact our loan specialists to discuss possible options today.