If you're looking to buy a home but fear that you won't be able to due to bad credit, you aren't alone. While the question might be, "Can I buy a home with bad credit?", you might be surprised to learn that the answer isn't as implausible as you might think. The average credit score for home buyers in America is at a staggering high of 731, but most home buyers can qualify for conventional loans with a credit score of at least 620. If your credit score falls below 620 or you lack a credit history all hope for owning a home is not lost.
Luckily, there are numerous paths you can take to become a homeowner.
1.Delay Homeownership To Repair Your Credit
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Repairing your credit score is easier said than done, but if you're not in a race to own a home this might be your best option. If you're aiming to apply for a conventional loan, then reaching a FICO credit score above 620 should be a priority. The higher your credit score, the more likely creditors will extend credit and you'll face lower interest rates. Review your full credit report, dispute any errors, and make plans to make on-time payments for existing debt. If you're feeling overwhelmed, consider hiring a credit counselor who's experienced with repairing credit.
2.Accept High-Interest Rates
If you have bad credit, accepting a high mortgage interest rate is a possible solution for your homeownership woes, but it may come to haunt you in the future. Mortgage lenders consider your credit score when deciding you qualify for a loan and determining your interest rates. A high credit score signifies to credit lenders that you're less likely to default on your mortgage loan, so they provide lower interest rates. When your credit score is low, lenders perceive lending to you as a risk and require a high interest rate to offset the extra risk they're taking on. In the long-term, these higher interest rates can lead to you paying thousands of dollars more in mortgage payments than if you had a low interest rate.
3.Save For A Large Down Payment
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When you make a down payment on a house, that means you are paying a lump sum amount upfront to purchase a house. A down payment is usually expressed as a percentage of the full price of the house, and the minimum down payment varies depending on the lender and personal credit history. But, choosing to pay a downpayment of 20% can improve your odds at qualifying for a decent mortgage rate from a conventional lender, despite having bad credit.
4.Consider An FHA Loan
FHA loans are insured by the Federal Housing Administration and protect lenders from defaults on payments. This protection makes it easier to meet lender qualifications and results in lenders providing lower interest rates. This is a perfect option for borrowers who have a credit score of at least 580. To qualify for FHA loans, there is a typical requirement of a minimum of 3.5%. A great part about an FHA loan is the ability to still qualify for a loan despite a history of bankruptcy or other financial problems.
If you're thinking about applying for an FHA loan, it's good to know that they're available with 30-year or 15-year terms. Pretty much, you're estimated to pay off your loan within 30 or 15 years with regular payments depending on the loan term you choose. Also, you have the option to receive fixed or adjustable rates on your loan.
5.Take Advantage Of Seller Financing
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Taking advantage of seller financing is a phenomenal option for someone with lackluster credit because it doesn't involve a bank. The seller and buyer make the payment arrangement between themselves and the seller finances the purchase for the buyer. When purchasing a home through seller financing, it's important to hire professionals to draw up a promissory note and contract stating the interest rates, payment schedule, and payment default consequences. This method of financing doesn't involve a transfer of principal from buyer to seller, but it's an agreement that the buyer will pay a sum of money over an agreed-upon period.
For some people, the purchase of a house might be the biggest purchase they'll ever make. Owning a house is seen as a sign of financial stability and it's associated with the "American Dream" causing people to hastily buy a house. People may rush into buying a house, but it's still a major commitment that shouldn't be taken lightly, regardless of your credit history.
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Aaliyah Sydonie Williams is a lover of pomegranates, intimate concerts, fluffy socks and all things R&B. She's a founder of a college advice blog, Her Little Corner, where she dishes helpful advice for college students to slay their college experience. When Aaliyah isn't eating at Starbucks, she's studying for her courses in finance, discovering new spots in the city, and brushing up on her photography skills. Keep up with her at Aaliyah Williams (@aaliyahsydonie).
Exclusive: Melanie Fiona On Making High-Vibrational Music & Saying Yes To Partnership
Melanie Fiona is back! After taking a little more than a decade-long hiatus, she has officially made her return to music and blessed us with two singles, “Say Yes” and “I Choose You.” While both singles are very different from each other, they both reflect who she is today and the type of music she wants to make. In our conversation, the mom of two expressed what she learned during her time away.
“It's interesting, even when I said it is like coming back, I don't ever feel like I really left because I was always still performing. I've still been public. It's not like I went into being this recluse person or version of myself, but the thing that I really learned in this process is that I think things take time,” Melanie says in a xoNecole exclusive.
“I think often we're so caught up in it, being on the timing of demand or popularity, or, like, striking while the iron is hot and the thing that I've learned is that everything is on God's time. That's it. Every time I thought I would have been ready, or, like, things were taking too long, I had to reship some things, personally, professionally, in my life. I also gave myself permission to make a living, not just make a living, but make a life for myself.”
Making a life for herself included getting married to Grammy-nominated songwriter Jared Cotter, starting a family, and embracing new landscapes, such as podcasting as a co-host of The Mama’s Den podcast. She also began doing more spiritual work and self-care practices like meditation, sound healing, Reiki, acupuncture, and boundary setting, which allowed her to get in touch with her inner voice.
“I wasn't putting out music, and I wasn't experiencing a number one record, but I was being a number one mom,” she says.
“I was experiencing things that were allowing me to heal and get in touch with myself so that I could make new music from a space of joy and freedom, and excitement again because I definitely feel like I did lose some excitement because of just politics and industry and what it can do to your mental health and even your physical health. So giving myself the space to really just say, ‘Hey, it's okay. Everything's right on time.’”
The joy and excitement are felt in one of two new singles, “I Choose You,” which is more of a lovers rock vibe, a tribute to Melanie’s Caribbean roots. While the Grammy award-winner is known for ballads like “It Kills Me” and “Fool For You,” she is becoming more intentional about the music she makes, calling it high-vibrational music. She says her music is a “reflection of my life,” as it captures every facet, from hanging out with friends to riding around in her car.
“Say Yes” has the classic R&B vibe Melanie is known for. However, both songs are inspired by her relationship. Melanie and Jared got married in December 2020, and the Toronto-bred artist dished on their relationship. Fun fact: he is featured in the “Say Yes” music video.
“When we first started dating, I had come into that relationship post a lot of self-work. I had gotten out of a long-term relationship, I had a year and a half to date and be by myself and do a lot of work on myself alone. And when we met, I remember feeling like this has to be my person because I feel it,” she says.
“And so when we went into that relationship, and we started dating, I was very clear. I was like, I know what I want. I'm very clear on what I need, and I'm not going to withhold my truth about myself in this process because of pride or fear of rejection. I know you love me, but I'm coming with my heart in my hand to let you know that if we're gonna get there, we have to put fear aside and say yes. So that was kind of like my open letter to him, which is why the video is us having a conversation.”
Melanie also shares that saying yes to her partner has empowered her in many ways, including motherhood and showing up for herself. Her new EP, also titled Say Yes, will be available at the top of 2025.
Check out the full interview below.
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Entertaining Like Ayesha Curry: Expert Advice For Holidays Done Right
Be prepared to wow the crowd.
It’s officially the holiday season, which means parties and gatherings galore. Between Friendsgiving, Christmas, and New Year's Eve celebrations, many of us are preparing to host loved ones in our homes one or two times between now and the end of the year. No matter the occasion or season, hosting for family and friends is a labor of love. But we can also agree that entertaining can be overwhelming, especially for first-time hosts.
As a seasoned host and entertainer, Ayesha Curry knows something about creating a memorable event for loved ones. Whether preparing for an intimate dinner with your immediate family or hosting a larger crowd, your guests will think you are a pro this holiday season with her tips on everything from welcoming guests to setting a beautiful table.
Q: What is your top tip for hosting?
Ayesha Curry:Part of being a great host is spending time with your guests, which means you can’t be stuck in the kitchen. Prep is key! I usually serve wine with the meal, but a cocktail or mocktail is a great way to greet guests. I prep the garnish the night before and batch the drink just before guests arrive. When the party begins, I pull everything out of the fridge and am ready to serve.
Writer Note: If you would like to offer non-alcoholic beverages for your sober or sober-curious guests, I love Saint Viviana Cab. It maintains full-body cabernet and flavor; no one will ever guess it’s alcohol-free. You can easily create a signature mocktail using Bittermilk’s Smoked Honey Whiskey Sour mix.
Q: Do you suggest any prep for serving or cooking?
AC:I lay out all my serving dishes and utensils the night before with little post-it notes saying what goes where. That way, I’m not digging around for anything. For more elaborate menus, I lay out quarter sheet pans and label them with tape according to the dish. I prep and measure everything for each recipe and then load each sheet pan with everything needed to make the dish. I wrap each tray in saran or foil, stack them, and place them in the fridge. Pull out the sheet pan you need when cooking, and everything is ready. It’s something I learned at the restaurant that saves so much time.
Q: What’s one item that should always be on a dinner party menu?
AC: Bread or roll with butter is excellent for holding guests over if the kitchen is delayed.
Q: What’s one non-menu item you should always have on hand?
AC: For a non-menu item, wine!
Q: How do you decide on a theme or menu for a gathering?
AC: It all starts with the occasion and the guest list. If it’s a group that doesn’t know each other very well, I may get more elaborate with the theme to help break the ice. For a group of friends or family who don’t get to see each other very often, I usually keep it simple so the evening can be all about catching up. A great playlist, good wine, and a family-style menu are all you need.
Q: Should attendees be expected to bring a gift?
AC: If I’m hosting, I’m not expecting gifts. The gift is taking time to come over and enjoy a meal with me! But bringing something to enjoy at the gathering, like a bottle of wine, is always appreciated.
Q: What are three affordable gifts that guests can give a host?
AC:A bag of excellent coffee is a beautiful gift for a host. Sweet July’s House Blend Coffee is sourced from all-female co-ops, so it’s a gift I love to give to the women in my life. Whether it’s being served after dinner or just for the host to enjoy on their own, you can’t go wrong with a bag of high-end coffee.
Fresh flowers are great if you have a host who likes total control over the food and beverage menu. Go for something neutral in color that can work with any décor.
The Sweet July Olive Oil and Balsamic Vinegar set is my go-to host gift. Bottled in Napa, it’s a gift any foodie will appreciate - and use!
Q: What are some creative tablescape or decor ideas that you love?
AC: I like to keep my dinnerware neutral and classic (like this ceramic collection in nutmeg) and infuse color and texture through linens. For centerpieces, I want to use what I have in my yard. If it’s summer, it might be flowers or greenery, but interesting branches can also look architectural in tall, clear vases next to tapered candles in the colder months. There’s no need to spend a ton of money on flowers.
With Ayesha’s tips, you can create a holiday gathering that your family and friends will cherish forever.
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