You don't have to have perfect credit to buy a home, but you can't be a deadbeat either. Normally you need to have at least a 620 credit score and if there is old stuff on the credit report keeping your scores down you'll need to have a relatively clean RECENT credit history - no late payments or collections in the last 1-2 years. You'll also be required to explain your circumstances to the underwriter...for example, what were the circumstances behind having these derogatory items on your credit and what are you doing/have you done to ensure they dont happen again in the future?
The lower your credit is, the higher the rate you will normally have to pay to borrow. So it pays to speak with a loan officer early on in the process and do all you can to get those scores up before you buy.
Feel free to call me or email me if you ahve any questions and I can walk you through the mortgage process.
Loan Officer -NMLS #977416
WCS Lending, LLC
Toll Free: 866.936.5363 ext. 278... more