Bad Credit Trying To Buy — A House

"We didn't look at houses for the first year," says David Chen, who bought his first home after repairing his credit following a failed business venture. "We looked at line items. We disputed errors on the credit report, paid down high-interest credit cards to lower our utilization ratio, and became obsessed with 'on-time' status."

The Long Way Home: Navigating the Dream of Ownership with Bad Credit bad credit trying to buy a house

The Federal Housing Administration (FHA) remains the most popular route. With a score as low as 580, buyers can often qualify with just 3.5% down. Even those with scores between 500 and 579 can sometimes find a path forward with a 10% down payment. "We didn't look at houses for the first

Perhaps the most overlooked tool in the bad-credit buyer's arsenal is the "Letter of Explanation." With a score as low as 580, buyers

For veterans or those looking at rural properties, these government-backed loans offer more flexible credit requirements and often require zero money down.