How to Buy a Home in Tampa with Bad Credit

It can be challenging to find and buy a home in one of Florida’s hottest housing markets. And when purchasing a home with bad credit, there could be additional hurdles – but homeownership is still possible. Let’s go over how you can buy a home in Tampa even with bad credit!

Increase Your Deposit

Lenders will hesitate to loan you money if you have low credit because you’re perceived as a high-risk borrower. One of the best ways to combat this is to increase the size of your down payment. Increasing your down will lower your LTV ratio, making more mortgage options available if you’re buying a home with bad credit.

Find Loan Programs for Buyers with Bad Credit

You don’t have to take a conventional mortgage to buy a home. Other mortgage options are available even with your not-so-stellar credit score. That includes:

  • FHA-Backed Loans: You can qualify for this mortgage with as little as 3.5% down, 96.5% LTV, and a credit score of 580. You can also be eligible for the loan with a score of 500 if you have 10% down.
  • VA Loans: Available for military members and veterans, you can qualify for the loan with a credit score of 620.
  • USDA Loans: The credit score requirement for the USDA loan is 620 and is available for lower-income homebuyers considering buying in rural areas.
  • Fannie Mae HomeReady Loans: Intended for low- to moderate-income borrowers, HomeReady requires a credit score of 620 to qualify.

Get a Co-Signer

You may qualify for a mortgage with a co-signer. That’s because a co-signer’s income and assets will be considered along with yours, which can help bump you over the credit threshold. Besides that, in many cases, the co-signer will also help lower your debt-to-income ratio, increasing your chances of securing a mortgage.

Buy a Home in Tampa with Bad Credit!

Don’t let your credit score be the reason you can’t own your dream home in Tampa Bay. Talk to our real estate experts! We’ll offer practical tips on how to buy a home with bad credit and help you find your ideal home in Tampa!