Know the Basics of Home Loans for Bad Credit in Houston

“Here in this write-up, we take a look at some of the basics things you need to know about home loans for bad credit in Houston.”

Home equity financing is the preferred part for most individuals and families to own a home. Interest rates are at historical low if you compare them over a period of last few decades. As a home buyer, all that you need to do is pay a fraction as down payment (0% in some cases) while the rest can avail in a single sum from one of the several home loan programs and repaid in regular installments. But to avail most loans, you will need to have a good credit score.

What do you do when you don’t have the ideal credit score to qualify for most of the loan programs? You can still borrow by making a larger down payment and yet enjoy attractive rates. Lending experts such as Clear Lending ( have been helping their clients avail home loans for bad credit in Houston. Let us take you through the basics of availing a home loan when you have a bad credit score.

Bad credit score, but how bad?

We often come across people who believe they have a very bad credit score and hence, can’t avail home loans.  For starters, you can’t avail a conventional home loan if you don’t have credit score of 620 or above. But there are other home loan programs that you can try. FHA home loans are meant for people with poor credit and who have lower incomes. You can avail this loan for 3.5% down payment if you have credit score of 580. For credit scores between 530 and 579, you can borrow by making 10% down payment. Credit scores below 530 can be considered in certain special cases.

Gather all resources

As we have mentioned above, there are lending experts who shall guide you with the complete process of availing home loans for bad credit in Houston. But an expert would be able to suggest you the right path when you offer them all the information they need. Start by collecting your credit report which acts as a benchmark to gauge what you are eligible for. Along with your credit score, the experts would also need information on your income, investments, foreclosures, bankruptcy and what you owe to other creditors in terms of Auto Loans, Student’s Loans etc.

Fill Pre-Approval forms

Rejection rates are high for people who wish to avail home loans for bad credit in Houston. In fact, approaching a lender directly isn’t going to work to your favor in most cases. Lending companies such as Clear Lending ( help you avoid this rejection with their pre-approval forms. These forms ask for all the information that lenders would consider before processing your request. Lending experts carefully go through the information and would let you know whether you are eligible for a loan and which loan programs are the best for your case. They will also inform you on lenders who can offer you the most attractive rates, thus ensuring huge savings in the long run. 

Now that you are aware of the basics of availing home loans for bad credit in Houston, you need to immediately get in touch with lending experts who will review your case and suggest the best course of action.

About Author: Joan Gallardo, with his 18+ years of experience as Senior Loan Officer, helps his clients avail home loans for bad credit in Houston. He writes regularly on topics such as first time home buyer programs in Houston.

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