Buying a home in Mississippi with low credit

Short answer: yes, it's often possible

Many Mississippi buyers with scores in the 500s and 600s buy homes every year, usually with government-backed loans. Each lender sets its own minimum on top of the program's rules, so two lenders can give you two different answers. That's why talking to a lender who works with lower scores matters.

Loan types that can work with lower credit

These are the most common options. Your lender will tell you which one fits your score, income and the home you want.

• FHA loans: insured by HUD's Federal Housing Administration. HUD's guidelines allow scores as low as 580 with 3.5% down, and 500 to 579 with 10% down, though many lenders require more.
• VA loans: for eligible veterans and service members, with no down payment required in many cases. The VA doesn't set a minimum score; lenders do.
• USDA loans: for homes in eligible rural areas, including much of the Pine Belt outside city limits, with no down payment for qualifying incomes.
• Mississippi Home Corporation programs: down payment help paired with a qualifying loan, through approved lenders.

What lenders look at besides your score

Your score is one piece. Lenders also look at steady income and work history, your debt-to-income ratio, recent late payments, collections and how much you have saved. A recent bankruptcy or foreclosure usually means a waiting period before you can qualify.

Credit work: steps that usually help

You don't need a pricey credit repair company to start. These steps are free or low cost:

• Pull your free reports at annualcreditreport.com and dispute real errors.
• Pay every bill on time from today on; recent history counts the most.
• Pay credit card balances down, ideally under 30% of each limit.
• Don't open new cards or close old ones while you're preparing.
• Ask about rapid rescore through your lender once errors are fixed.
• Meet with a free HUD-approved housing counselor for a written plan.

A realistic timeline

Some buyers are ready in a few weeks once an error is fixed. Others need several months of on-time payments and lower balances. A lender can run your credit, tell you the score you need, and check in as you improve, so you're never guessing.

How Travis helps buyers get ready

Travis DeLoach is a licensed Mississippi real estate agent with Luxury Southern Realty in Hattiesburg. He isn't a lender or credit counselor, but he works with local lenders who handle FHA, VA, USDA and Mississippi Home Corporation loans every week, and he'll connect you with one who fits your situation.

• A free first conversation about your goal, timeline and budget
• Introductions to Pine Belt lenders who know first-time buyer and down payment programs
• A home search kept inside the budget your lender approves
• Help asking sellers for closing cost help when the market allows it

Before you rely on any number

Program rules, income limits and credit minimums change. Confirm current details with a lender, the Mississippi Home Corporation (mshomecorp.com) or HUD (hud.gov) before you rely on them.