Myth: You need a Perfect Credit Score to buy a Home.

Myth: You need a Perfect Credit Score to buy a Home.

Today's myth is, You need the perfect credit to buy a home. Is that Myth true? Welcome to this episode of Myth Versus the Truth.

Now, having a perfect credit score is excellent. The reason is because you get a better interest rate, there are more options for the loan programs. However, you do not need to have a perfect credit score in order to purchase a home. So, for example, there are different programs like FHA Loan, that is a program created for exactly the same reason. Even you have a high credit score, or a low credit score, you just have to be able to have the minimum requirements. You will get the same interest rate. 

In other types of loans, conventional loans, for example, you will have to maybe give a little higher down payment or you will get maybe a little bit of increase in your interest rate. But that doesn't mean that you cannot purchase a home. So the bottom line is don't stop yourself from purchasing your home because you have a little bit lower credit score. My advice will be to check with a lender.

You never know, you may have some options available for yourself. So don't stop yourself because of the low score. There are a lot of different factors for qualifying for the mortgage, the income, the expense ratios. You may have all this. So that little short on the credit score or credit help may not be a problem.

Check with the lender, give us a call. We'll guide you through. So I hope this information will help guide you in making the right decision. See you next week in another episode of Myth vs. The truth.