There are a few reasons why you may not qualify for a home loan: maybe you have a low credit score, too much debt, or simply don’t have a sufficient income to qualify. But that doesn’t mean you have to give up your dream of buying a home. There are plenty of alternative options for those who don’t quality for a traditional loan. Whether you can find someone to co-sign with you or want to explore a non-traditional loan, we’ve outlined some possible options along with their benefits below.

Co-Signer

A co-signer is a great option to help you with a home loan if you can’t otherwise qualify for one. A co-signer is someone who will be held responsible for your mortgage payments if you are not able to continue paying them. If someone co-signs with you, both of your credit scores will be considered. This will greatly increase your chance of qualifying if low credit is standing in your way. This is obviously a big responsibility and favor. Not many people are willing to co-sign because of the risk of having to pay off your loan for you, If you don’t have sufficient credit, but you also aren’t able to find a co-signer, don’t worry. You still have options. There are several companies that offer non-traditional loans, which will require little to no money down.

FHA

The Federal Housing Association (FHA) offers loans to anyone with a credit score of 580 and above. These loans were created in order to increase homeownership in America. They are a great option for anyone who doesn’t qualify for a traditional loan or can’t afford a larger down payment. An FHA loan also only requires a 3.5% down payment.

VA

If you happen to be a veteran, a Veteran’s Association (VA) loan is a great option for you. These loans are some of the cheapest options available. They are 100% financed by the VA. They require zero percent down. The only money you’ll need to pay is usually a one time funding fee of 2.15%. However, this fee may be waived for veterans who receive compensation for service connected disabilities or receive disability compensation. Typically, you’ll need a credit score of at least 620 to qualify, but some lenders will accept those with lower scores.

USDA

USDA loans were created by the US Department of Agriculture in order to promote the development of infrastructure in rural areas of the United States. But don’t write these loans off just because you don’t consider the town you live in to be rural; the USDA's definition of “rural” might not be the same as yours. You can use this tool to see if your address qualifies.  The mortgages are zero-down, with super low mortgage insurance premium payments of about .35% that are built into your monthly payments. Not being able to qualify for a traditional loan may feel disheartening, but it’s not the end of the road.  Your dreams of owning your own home don’t have to be crushed! As you can see, there are still plenty of flexible options available if a traditional loan isn’t right for you. Continue to explore these options, and you’ll be on your way to buying your dream home in no time!