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FHA loans are perfect for first-time home buyers, they require a 580 credit score and a low down payment of 3.5%. FHA loans make is much easier for a first time home buyer with bad credit to purchase a house. However, not all lenders will approve borrowers with a 580 credit score, many will require a higher score around 620.
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The effect buying a home has on your credit basically, boils down to how you manage your credit throughout the lending process and how you deal with your mortgage payments after you become an official homeowner.
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