Can i buy a home with bad credit?
You can always buy a home, no matter what your credit score is… The issue is whether or not you can get financing. When you have bad credit, you (theoretically) pose a greater risk to lenders. They are worried you won’t pay back your loan, in which case, they will have to seize your property and kick you out. In this way, home loans are secured loans — they are secured by the underlying property (your house). This is why home loans have lower interest rates than unsecured loans — home loans are less risky because the lender can always repossess the underlying property to recover his money. However, to do this is not free: It is a big and costly legal hassle, and since there is a limited amount of money that each bank can loan, they would prefer to lend it to safer borrowers with higher credit scores. Of course, an appreciating (rising) housing market makes it much easier for people with bad credit to get home loans. From 2002 to 2005, housing prices were soaring throughout most of
