Yeah, I hear you. Timing the market perfectly is almost impossible—by the time you think you’re ready, things have already changed. When we bought, my credit wasn’t ideal either, but we locked in before prices jumped again. Sometimes you just have to weigh the risks and pull the trigger, even if it feels a bit uncomfortable. Waiting for “perfect” conditions can end up costing more in the long run. It’s a tough call, but that’s just how it goes sometimes.
I get where you’re coming from—waiting for the “perfect” setup can be a trap, especially in real estate. But I’ll admit, I’m usually the one running numbers a dozen times before making any move. I’ve seen people jump in with less-than-ideal credit and sometimes it works out, but other times those higher interest rates or PMI costs just eat away at any gains they thought they’d have.
When I bought my first rental, my score was hovering just above 600. I managed to snag a decent rate, but I still wonder if waiting another six months to boost my credit would’ve saved me a chunk of change over the life of the loan. On the flip side, prices did creep up during that time, so maybe it balanced out... Hard to say for sure.
I think it really depends on your long-term plans. If you’re planning to stay put for a while, locking in—even with a not-so-great score—might make sense, especially if rents are climbing and you’re tired of throwing money away. But if you’re stretching your budget thin just to get in, that’s where I get nervous. Seen too many folks get burned when unexpected repairs or job changes hit.
Curious—did you guys look at any down payment assistance programs or FHA loans when your credit wasn’t ideal? I know some of those options can help, but I’ve always wondered if the extra hoops are worth it compared to just waiting and improving your score.
Honestly, I’ve seen folks go both ways with FHA loans—some get in the door with a lower score and it works out, but others run into headaches with stricter property standards or higher monthly payments. The paperwork can be a pain, too. Did you ever compare what your payments would’ve looked like if you’d waited for a better rate, or was it more about getting in before prices jumped again? Sometimes the math just doesn’t line up the way you expect...
Can You Buy a Home with a 580 Credit Score?
I totally get what you mean about the math not always adding up. When I was looking, I ran the numbers about a dozen different ways—spreadsheet city over here. For me, it came down to three things: how much cash I had for a down payment, what my monthly would look like with the FHA’s mortgage insurance, and whether I could stomach the idea of waiting and risking prices going up even more.
Here’s how I broke it down:
1. Checked what my payment would be with my current score and the FHA rate at the time (including that pesky mortgage insurance).
2. Compared it to what it might look like if I waited six months, paid off some debt, and maybe got a better rate... but also factored in if home prices kept climbing.
3. Looked at how much extra I’d pay over the life of the loan if I jumped in now vs. later.
Honestly, the paperwork was a beast—felt like signing my life away—but at least I knew what I was getting into. If you’re not in a rush, sometimes waiting pays off, but in my case, prices were moving faster than my credit score could catch up. Sometimes you just gotta pick your poison...
Totally relate to the “spreadsheet city” life. I did something similar—ran every scenario, tried to predict the future (spoiler: couldn’t).
That’s honestly it. For me, the FHA route worked since I had enough for 3.5% down, but the mortgage insurance stings a bit. If you can swing waiting and bumping your score, it might save you some cash long-term, but there’s no perfect answer. The paperwork, though... yeah, that’s a whole saga by itself.“Sometimes you just gotta pick your poison...”
