Having a roof over our head, and that too one that is rightfully ours is like a dream come true. However, what happens in the way of it all is securing a loan. Also, loans depend upon our credit score.  If we have been responsibly handling our payments, then our credit score will be impressive enough for us to secure a loan without any difficulty.

However, if we fail to show a good credit rating, it can get a tad difficult. Learn here about how you can improve your credit score and your chances of getting the loan you need.

Improve your credit score:

The first thing to get started on is to reduce your debt and gather as much cash as you can. Also, analyze your credit history and look for those mortgage lenders who will offer you the best loan provisions.  You can check your credit report at your bank and update your accounts, look for any errors that need to be corrected and sort out your credit history. This will enhance your credit score and help you secure a loan.

Consider going for a FHA loan:

If you have bad credit and still wish to secure a loan, then you can go in for the FHA loan, or the Federal Housing Administration loan. It’s an agency that guarantees loans by authorized mortgage lenders. With the FHA supporting your mortgage, you will be able to enjoy some fluidity while making the down payment.


Of course, you will need to buy insurance (for the lender). There are many more such agencies that can assist you in securing a loan if you have a bad credit.

Other options to get a home loan:

Learn here how you can secure a loan by finding a co-signer. A person, family or friend, who helps you get the required funding is a co-signer. He is also someone who is held responsible if you fail to pay back the mortgage in time.

Another option is to find a relative or a friend who will help fund the purchase. However, there needs to be a proper understanding between you and them, considering the kind of misunderstandings or bitterness that may creep up if you are unable to pay them back.

You may also choose to make a more substantial down payment. This gives you relief in the form of lower monthly installments to pay back the mortgage. It saves you much money in the long run, too.


Buying a home with a low credit score can be difficult, but there are alternatives you can make use of to fulfill your dream.  This can be achieved with careful planning and implementation

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