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How does homeonwership affect your credit score?

Answer

If you purchase a home, you are taking on new debt and that will make your credit score go down for a short time. After you get some mortgage payments in and on time, it will most likely make your credit score go up.

More Homeownership FAQs from Low Income Households

  • How can homeownership benefit me?
  • How can homeownership benefit me?
  • How to buy a home with bad credit?
  • Are there HUD homeownership programs?
  • Is it better to buy a home or rent?