Are you looking to buy a home in Melbourne, FL, but have a low credit score? No worries! With the right real estate agent and home loan owning your own home can be more than just a dream. There will be more hurdles when buying a home with a low credit score, but the results could be worth the effort. Contact Shamika today to begin your home buying journey today!

Home Loans For Low Credit Scores

The hardest part of the process of buying a home with low credit is getting approved for a loan. If you have purchased a home before or know someone who has, this is something that many people fear. Most traditional lenders won’t take the gamble of qualifying someone with no or low credit with a mortgage loan. However, it is still an option. That being said, a government home loan for low credit scores can help out people who want to buy a home but have bad credit or no credit.  

If you are interested in learning more about how these loans can help you secure the home of your dreams, call Shamika today! 

FHA Loans or Federal Housing Administration Loans

Since 1934, FHA loans have been helping people buy homes. A HUD-approved housing counselor can help you secure one of these government loans. If your score is 580 or higher, you only need to put down 3.5%. If your score is 500, you’ll need to put down 10%.

VA Loans or Veteran’s Administration Loans

Everyone, especially those who have served our country, deserve to be able to purchase their own home. If you are a veteran or an eligible surviving spouse, a VA loan can be an excellent option for you to become a homeowner. Private lenders provide a VA loan, and the VA guarantees a providing a portion of the loan. Typically, the private lender requires a score of anywhere from 580 – 660. It’s essential to do your research when shopping around for a VA loan.

High-Interest Loan

As you probably know by now, purchasing a home with low or no credit can be difficult, despite the options available to you. With low credit or no credit, unfortunately, comes high-interest rates on loans. It is recommended that if you are going with a traditional loan, you should have a sizable down payment to avoid paying even more in interest rates. Here are some factors that mortgage lenders take into consideration when deciding to approve a home loan:

  • Debt-to-Income ratio
  • Down Payment
  • Income
  • Work History
  • Any Co-Signers

There is more than just your credit score that goes into mortgage approval, and it’s essential to know all of them and how to prepare. Thankfully, Shamika is here to help walk you through this process. With her help, you will be fully prepared for anything that comes in the way of your home buying journey.

home loan for low credit

Repair Your Credit Before Deciding To Purchase

It may be a hard pill to swallow, but sometimes the best option is to work towards your home buying goal by building your credit. Luckily there are a lot of ways you can repair your credit. A high credit score could mean a significant down payment difference if you decide to go with an FHA loan. If you are looking for help in building your credit, Shamika can help! Visit Shamika Saves to learn more about her credit building services.

Buy A Home With Low Credit in Melbourne, Florida

If you are in the market to buy a home in Melbourne but have either no credit or low credit, Shamika Sells can help. Shamika has worked for ten years in Brevard County, Florida, helping people with low credit scores achieve their dreams of buying homes. Shamika has knowledge of Government Home Loan programs and HUD Housing inside and out to better serve you. Contact Shamika today and achieve your goal of being a homeowner. Call 407-930-9570 or fill out the contact form here, and Shamika will be in contact with you! Or if you’ve decided you need to focus on building your credit to avoid high-interest rates and down payments, check out Shamika Saves. Shamika has been guiding people back to great credit with her business Shamika Saves.