Not everyone has great credit. And home buyers that do not can utilize Owner Financing.  There are companies that provide financing on home purchases to buyers that have less than perfect credit.

Medical collections, missed payments, high credit card balances — they all take their toll on your credit score.

Luckily, you don’t need impeccable credit to buy a home. In fact, some loan programs allow credit scores down to 580.

How to get a mortgage with a low credit score

The problem most credit-challenged people face is the lender’s “no.” But a “no” is not always a “no”. A “no” might mean “we don’t want your business.”

Lenders “make up” their own rules about what kind of applicant they will serve. They don’t have to follow “by-the-book” guidelines.

For instance, official FHA guidelines say you can get a 3.5% down loan with a 580 score. But many lenders set their own minimum at 620 or even 640.

What does that mean for you? Apply with many lenders, especially if you have a lower credit score.

You may be denied at one lender, and accepted with open arms at another.

Check your eligibility for a low-credit home loan here. (Oct 31st, 2018)

Credit score minimums