First Time Homebuyer - Fair Credit
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Consumers with fair credit can buy a home, even as a first time homebuyer. However, generally the lower your credit score is, the more money that will be required from you for a down payment. The opposite is normally true as well, the higher your credit score is, the lower the down payment requirement will be. Some consumers can still qualify for a first time homebuyer loan with no down payment required with fair credit. Therefore, you will need to consult a mortgage broker to see what you qualify for.When trying to purchase a home with fair credit, it is important to keep your current credit up to date. The longer the period of time between your last delinquency, the better. Be prepared to write an explanation for any slow pays on your credit report.
If you are a first time homebuyer you can still qualify for a loan with fair credit. There are several government programs available that do not rely solely on your credit score. If possible take steps to improve your credit by disputing credit report errors and paying down your credit balances.
When purchasing a home as a first time home buyer with fair credit, be sure to look into programs that are backed by the government such as FHA and My Community mortgages with your mortgage broker or banker. These particular programs have relaxed credit score requirements and can use other compensating factors in lieu of them.
With Fair Credit you can get involved with government programs that subsidize qualified individuals. Ask your broker about CRA's that may be available in your county.