Yes, it is possible to purchase a house with a credit score of 528, but it may limit your options when it comes to choosing a mortgage. Conventional mortgages typically require a minimum credit score of 620, which means you may need to explore other options such as an FHA loan. Here are some key points to consider:
Conventional Mortgages: A credit score of 528 may make it difficult to qualify for a conventional mortgage. These types of loans typically require a credit score of at least 620 or higher.
FHA Loans: An FHA loan may be a good option for those with a lower credit score. The minimum credit score requirement for an FHA loan is 500, although a score of 580 or higher may be required to qualify for the lowest down payment option.
Higher Interest Rates: If you do qualify for a mortgage with a lower credit score, it’s important to note that you may be saddled with a higher interest rate. This could result in paying more for the house in the long run.
Action Steps: The most important step in buying a house with a lower credit score is to take action to improve your credit. This may include paying down debts, making on-time payments, and disputing errors on your credit report. You can also work with a financial advisor to come up with a plan to improve your credit over time.
In conclusion, while it is possible to purchase a house with a credit score of 528, your options may be limited. Exploring other mortgage options such as an FHA loan and taking action to improve your credit will greatly increase your chances of buying a house in the long run.