4 Ways To Buy A Home – Even With A Bad Credit Score

home loan even with bad credit

While it is not impossible to buy a home, even if you have a low credit score, it certainly is a lot more challenging. After all, a low credit score is a signal to lenders that you aren’t a reliable borrower. If you do manage to land a loan, it is likely to have a higher interest rate and possibly come with more continuous fees, just because of your less-than-ideal credit score.

That said, if you still want to buy a home despite your low credit score, here are a few things you can do to improve your chances:

  1. Establish A Solid Payment History

The biggest driver of your FICO score hinges on your payment history. It’s critical that you work to make your payments on time while meeting your minimum obligations. There are ways to kick-start this process or even enhance what you already have and we’d be happy to assist you in doing so. 

  1. Pay Off Your Debts

This might sound obvious, but if you want to improve your credit score, you need to stop adding to it. Don’t open new debt accounts, and don’t take on additional debt. If you’re already carrying debt, pay it down. Be mindful to leave a small balance so you can continue to make payments on time to reinforce your payment history.

  1. Rebuild Your Credit

If you’ve already made mistakes with your credit score, and it’s in bad shape, there are some paths you can take to expedite this process which can cut your score building time into months, rather than years. You’ll find more success in working to correct past mistakes with prior credit agencies than you typically will by opening new accounts that will immediately lower your score for a period of time while you rebuild your payment history.

  1. Find A Co-Signer

Even if you are able to buy a house on your own, you might still want to find a co-signer. There are companies that will help you co-sign a loan, and they also help you build your credit score. This can make it much easier to buy a home in the future.

You can also look for friends or family that are willing to co-sign with you. They can help you secure a much better loan, given they have a better credit score. However, be aware that this will totally depend on your family or friend’s willingness to co-sign, so know that they can disagree with your idea.


A low credit score is something that you cannot ignore when you’re looking to buy a home. Your credit score will determine the interest you pay on your mortgage, it will determine whether or not you can get a loan, and it will help determine whether or not you can actually afford a home.

In the best of all worlds, you would go into the home buying process with a great credit score, but if you don’t, there’s still a lot you can do to help improve your chances!

Omega Mortgage Group offers skilled mortgage specialists that can help borrowers find the perfect mortgage. If you are looking for a mortgage lender in Reno, reach out to us today!