Buying A House With Bad Credit

by Admin on July 5, 2021

If you are looking towards buying a house with bad credit, let me stop you and say, don’t.  You will pay dearly for it.  But, I’m not saying that your dream to own a house is over if you have bad credit—not at all.  There are a few things to raise your credit score immediately so that you can buy a house with at least OKAY credit.  If you want to buy a house with bad credit, be prepared to put down at least 20% towards the down payment and pay a really high interest rate on your loan.  Conventional lenders no longer lend to people with bad credit.  So basically you will have to get special financing from “hard money lenders” who will lend to you.  These hard money lenders have a monopoly in the market and are not scared to put forward unreasonable terms that no person with good credit would sign.  They also charge really high interest rates to hedge their risks.

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First of couse, if you don’t know your credit score, then I highly suggest you get your free credit score (well, $1) and three bureau report from  After you have thoroughly gone through your credit report, find any late payments you’ve had in the last two years.  What we are going to do is dispute the late payments.  That is by far the easiest way to raise your credit score.  When disputing your late payment, you are basically giving the credit bureaus 30 days to investigate and refute your claim.  If they do not investigate within thirty days (and often don’t), then the late payment will be erased from your credit report.  It is that easy.  Remember to send your disputes to all three credit bureaus.  It is really that easy.  You can find out more about disputing credit reports here.  Doing something like this can raise your credit score by as much as 100 points in as little as a month.  The goal is to get your credit score to at least 621, hopefully a lot higher.

The second thing you can do to is pay off a huge chunk of your credit card debt.  If you do not have the money to pay off your credit card debt, you may want to borrow it from friends or family for a few months.  The amount of debt you owe on your credit card has a big part to do with your credit score.  If you can pay off a huge chunk of your credit card debt and reduce your debt-to-credit ratio to under 35%, then you can also significantly raise your credit score in as little as thirty days.

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