The Federal Department of Housing and Urban Development or HUD (for its acronym in English) oversees the Fair Housing Act. HUD is responsible for ensuring, inter alia, that low-income families have the opportunity to become homeowners. Often, low-income families do not have perfect credit, which can make it difficult to get a mortgage loan. You can buy a home through HUD with bad credit if you are diligent in your efforts.
- Determine how much you can afford to spend each month on a mortgage.
Before addressing the topic of your credit, use the calculator property to determine how much you can afford to pay a mortgage. You should not try to buy something that you cannot afford; ultimately, you could worsen your credit and possibly lose your home.
- Apply a federal home loan with the help of HUD’s website. You can apply directly with a lender approved by the Federal Housing Administration or you can talk to a housing counselor HUD. HUD counselor can help by showing you the best options available to you based on your credit situation. You can find a list of FHA lenders based on specified criteria or you can contact a housing counselor by using information provided by HUD on your website.
- Government investigates options. The government offers different programs for different circumstances, such as programs for home ownership through the Veterans Administration or the Department of Agriculture. If you are a candidate for any of these programs, visit the websites of the agencies to get details on how to apply and what is required.