Purchasing a home is a dream for many families, including those who are serving in our military. Colorado Springs is home to a variety of families from all walks of life and all careers. Within that mix, there are those that may be struggling to repair their credit. There are many reasons why individuals have bad credit, from large medical bills to the unexpected loss of a job.
Credit scores can also be impacted by age, major expenses, and credit card debt. The average credit score in the U.S. tends to fall between 660 and 720. When your credit score is lower, however, it can end up costing you more in terms of interest over the life of your loan. Nearly a third of Americans have a credit score of less than 601, and they can end up paying the price in their loan terms. Suddenly, a home of your own can appear to be out of reach regarding the cost of your monthly payment, especially when you factor in rising interest rates.
As a result, you might be thinking that your low credit score puts buying a home out of reach. I am here to tell you that does not have to be the case. In fact, making regular payments on a home can help to improve your credit over time. Still, you might be wondering, how is it possible to find a loan that can allow you to buy a home?
FHA home mortgage programs can be the means you can use to purchase a home in Colorado Springs. These loans offer more favorable terms regarding a down-payment. However, there are also cost considerations involved in this program, as you must pay a fee for the government insurance that protects your loan, essentially easing the risk of your lender. This fee is typically less than a conventional loan.
The best part is that the FHA loan program is attractive for those with lower FICO scores, meaning that you can have a score at 580 and still have the ability to qualify for the program. Are you interested in pursuing an FHA loan, click here for a quote!
Our team at Elevation Mortgage works with home buyers that have a variety of credit scores, but with our network of lenders, we can find you the right program to fit your financing needs and budget. If your credit score is less than stellar, contact us to find out what options are available. Your dream of homeownership does not have to remain a dream!