Worried you won’t qualify for a home loan with bad credit? Been denied for a mortgage; now what?

Even first time home buyers can get home loan with bad credit!

Whether you are a first-time home buyer or have previously owned a home — or purchasing or refinancing — there are several types of mortgage programs in California, even those that help first time home buyers get a home loan with bad credit. No doubt, there’s one that will best suit your needs. We want you to know, whatever your situation, we have solutions for you, so don’t be discouraged. . . Let’s get started!

Of course, we’ll cover conventional programs that require a down payment and a higher credit score, however, there are conventional loans that are more forgiving. In fact, there are programs that only require 3% down!

Borrowers need higher FICO scores to get a conventional loan than government-insured mortgages like FHA, VA, or USDA loans, which we are also going to discuss.

There are unique challenges to buy a home in the Bay Area

Home prices in California are high compared to many states in the United States. That’s when jumbo mortgages come in handy. Jumbo loans are available in amounts up to $3 million. High-cost areas include Los Angeles, Alameda, Contra Costa, Marin, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, and Santa Cruz counties.

VA loans are one of the best deals going because they require zero down and in Contra Costa County there is an option for a USDA home loan which is another zero-down payment option.

Getting a home with bad credit — or, more accurately, a low credit score — can be challenging, but it’s not impossible.

Purchasing a home often times requires having money for a down payment, a solid history of paying your bills over at least the past year or two and a steady income, of course not everybody has all these things. Are you now wondering if you’ll meet the lender’s minimum credit score requirements?

While higher credit scores earn more favorable loan terms, it’s still possible to buy a home with bad credit.

When you are a potential home buyer, while you are saving up and researching neighborhoods and mortgage companies; it’s important to reduce debt, accumulate as much cash as you can and review your credit history.

Knowing and understanding your creditworthiness is an essential step in buying a home with bad credit. To find out, examine your credit report and check your credit score.

There are a variety of places you can find your credit report, including personal finance websites like NerdWallet, the financial institution where you bank and the government-mandated website annualcreditreport.com.

Check your reports for errors. Look for accounts that haven’t been updated correctly or anything else that doesn’t accurately reflect your true credit history. If you do find errors or inaccuracies, you can dispute them with the credit bureaus or the creditor reporting the information.

Clean up your credit history. Making on-time payments may help your credit score. And a better credit score can lift your chances of getting a more affordable home loan.

Your free credit reports won’t include your credit scores. To see scores for mortgages, you can purchase a full report from myFICO.com. The most economical approach is to sign up, download the first month’s information, then cancel the service before the next billing cycle.