How to Buy a House With Bad Credit in Texas

by Robert Lee ; Updated July 27, 2017
Repairing bad credit is essential to qualifying for a home loan.

You can buy a house in Texas with bad credit by cleaning up your credit report and improving your credit score as much as possible. Plenty of free help is available in Texas to help you get ready for home ownership.

Credit Counseling

Make an appointment with a nonprofit credit counseling agency in Texas, such as the Consumer Credit Counseling Service of South Texas. Authorize the credit counselor to pull your credit report and review it with you. Follow the counselor's advice for addressing all delinquent items on your report such as charge-offs, judgments and liens. Also make payments to bring all existing accounts current and maintain an on-time payment history for 12 to 24 months.

Housing Counseling

Call the U.S. Department of Housing and Urban Development (HUD) to find a HUD-approved counselor in Texas near you. Ask the counselor about mortgage loans insured by the Federal Housing Administration (FHA). In August 2010, FHA loans were available with credit scores as low as 500---far below the 620 score generally recognized as the cutoff for "good" credit.

Real Estate Agents

Hire a real estate agent knowledgeable about the FHA home-buying process. Find a home in Texas and apply for a mortgage through an FHA lender or another lender comfortable with people who have had credit problems.

About the Author

Robert Lee has been an entrepreneur and writer with a background in starting small businesses since 1974. He has written for various websites and for several daily and community newspapers on a wide variety of topics, including business, the Internet economy and more. He studied English in college and earned a Bachelor of Arts in liberal arts from Governor's State University.

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