house loans for bad credit first time buyers
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so.
The “piggyback loan” program is typically reserved for buyers with above-average credit scores. It’s actually two loans, meant to give home buyers added flexibility and lower overall payments.
Because FHA loans are insured, they’re often offered with competitive interest rates, even for bad credit buyers. It’s possible for a first time home buyer with bad credit to get a non-FHA loan, but they will most likely end up with a much higher interest rate.
FHA loans are perfect for first-time home buyers, they require a 580 credit score and a low down payment of 3.5%. FHA loans make is much easier for a first time home buyer with bad credit to purchase a house. However, not all lenders will approve borrowers with a 580 credit score, many will require a higher score around 620.