Simple Guide for Homebuyers with Low Credit History
🏡 Simple Guide for Homebuyers with Low Credit History
What to Do When Your Credit Score Feels Like a Roadblock
You want to buy a home in Louisiana, but your credit score isn’t exactly brag-worthy. Sound familiar? Don’t panic. You’re not alone—and you’re not out of options.
Here’s a simple, straight-talking guide for buying a home even with low credit, written for real people who are ready to move forward.
✅ What’s Considered “Low Credit”?
Generally speaking:
Below 580 is considered poor
580–619 is low but workable
620+ opens up more traditional loan options
But remember: your credit score is just one piece of the puzzle. At Parish Lending, we look at your full financial story—not just the number.
🔍 Step 1: Know Where You Stand
Check your credit score for free at:
Credit monitoring apps (Experian, Credit Karma, etc.)
👉 Look for:
Errors (duplicate accounts, incorrect balances)
Collections you weren’t aware of
High credit utilization (maxed-out cards)
Even small corrections can bump your score up fast.
🛠 Step 2: Explore Your Loan Options
These programs are designed to help buyers with lower credit:
FHA Loan (via HUD.gov)
Minimum score: 580 (with 3.5% down)
Can go as low as 500 with 10% down - you won’t find this option with most lenders, but we can help!
More forgiving on past late payments or collections
Back-end DTI up to 55% can be approved with the right file
VA Loan (benefits.va.gov)
No minimum credit score set by VA
Many lenders approve with scores as low as 580–620
$0 down and no monthly mortgage insurance
Must be eligible veteran, active-duty, or surviving spouse
USDA Loan (rd.usda.gov)
Ideal for rural areas in Louisiana
Typically requires 640+ but exceptions are made
$0 down and very low mortgage insurance
Income limits apply
💬 Not sure where you fit? At Parish Lending, we’ll walk you through it and match you with the right program for your situation.
💳 Step 3: Boost Your Credit — Fast
Some quick wins:
Pay down credit card balances under 30% of the limit
Ask for credit line increases (without a hard inquiry)
Dispute errors on your credit report
Become an authorized user on a trusted family member’s account
We’ll help you build a custom plan—no judgment, just results.
🧾 Step 4: Get Pre-Approved with a Lender Who Knows the Game
Not all lenders are set up to work with lower-credit buyers—but we are.
At Parish Lending, we specialize in:
FHA, VA, and USDA files
Manual underwrites
Structuring files with strong compensating factors
Helping you get to the closing table even if the big banks said no
✅ Final Thought
Low credit doesn’t mean no chance. It means you need the right strategy and the right lender—and that’s exactly what you’ll find at Parish Lending.
📞 Call or text Erica Scalise Roberts at 225.900.7447
📧 Email: erica@parishlending.com
🔗 www.parishlending.com