I definitely understand! Being approved for a mortgage can be trialsome with low credit. With low credit scores, you may what to try for a FHA loan which is provided by the federal government. Though even for that loan, a minimum of 620 Is required. Keep in mind that the credit score that mortgage lenders see is often quite lower than one you may see from your regular FICO score.
Now with all of that said, yes, getting a mortgage may prove difficult. But there are other ways to step into that home that you want without a mortgage. These may call for you or your real estate agent proposing these financing ideas to the seller, if the home is not currently marketed in this format. The following are only a couple of ways that make it possible to get into a home without a mortgage and with lower credit:
1) Search for Lease Option Homes. These are homes where the seller is leasing the residence to you in the hopes of you eventually buying the property. In this case, you pay monthly rent plus a bit more; that extra cost often gets added to the down payment amount, if you chose the purchase the home. If a seller is not offering this, you can always propose the idea. Pros: you get into a home, build credit while paying monthly, get amounts put towards a down payment, and will eventually be able to purchase the home with a mortgage if you are finding the right price for you. Cons: monthly cost is a fair amount higher than a mortgage, and if you decide not to buy or to move, you don't get any money back (unless agreed otherwise). There is definitely a lit to say about this option alone so feel free to ask questions.
2) Sone seller, typically ones who are trying to sell quickly, will allow you to assume their mortgage. In this case you move in without opening a new mortgage. You just pick up the payments in their mortgage. This is usually only viable for the seller if by selling they would not make a profit and they are better off having the property off. With this option, when you begin making payments on their mortgage, you can even request that the mortgage be signed over to you since you are now assuming their payments. Most sellers who are in a tight place will be happy to do this. Pros: paying a mortgage that would be cheaper than a new mortgage. Cons: takes work to find or spot these types of sellers and it's possible that a seller may not want to hand the deed over at the start. Definitely a lot more regarding this option as well!
There are plenty more options to explore. Main point is that a mortgage is going to be difficult to obtain from a lender with certain scores but it's not the end because there are many options that don't necessarily involve a mortgage that could be viable. I definitely recommend you look into alternative, creative options that might best suit you. Worst option is that you wait a year, focus strongly on building your credit, and reevaluate your credit and ability to obtain a mortgage then.
88201973 I really hope this helps!
