Bad Credit Home Loans
Many consumers are afraid that due to their bad credit they won't be able to get or qualify for a home loan. Luckily for you there is no absolute answer to this question. Sometimes your situation might be bad enough that you can't get one but in almost every case you have a chance.
So how can you qualify for a home loan if you have horrid credit? There are several ways to do it. We will go over a few of them here.
The first thing that you should do is get your credit history. Go to your mortgage broker and just ask for it. Since they want to close a loan with you they will give that to you for free.
Once you have your report in hand you should go through it and make sure that it is accurate. If you have been bad at paying bills then your report will stink. But if you are lucky you will have a few things that are wrong. A quick letter to the service bureaus will fix it.
Once you have your score figured out you can start applying for different types of loans. If you have never bought a new home before you should first apply for a FHA loan. If you can get approved for an FHA you are in luck. You save money on the down payment and on the interest rate.
FHA loans are subsidized by the government for first time home buyers. The great advantage to a FHA loan is that your rate is cheap and your down payment is low.
But do not despair if you don't qualify for a FHA loan. You can still apply to other programs that will help you get into a house. Obviously the worse your credit is the more that you will pay out in fees but you can still get a house.
Your last good option is to just save a lot of money. If you are willing to put 20% down then you have a really good chance to qualify for a home loan even if your credit is bad.
So how can you qualify for a home loan if you have horrid credit? There are several ways to do it. We will go over a few of them here.
The first thing that you should do is get your credit history. Go to your mortgage broker and just ask for it. Since they want to close a loan with you they will give that to you for free.
Once you have your report in hand you should go through it and make sure that it is accurate. If you have been bad at paying bills then your report will stink. But if you are lucky you will have a few things that are wrong. A quick letter to the service bureaus will fix it.
Once you have your score figured out you can start applying for different types of loans. If you have never bought a new home before you should first apply for a FHA loan. If you can get approved for an FHA you are in luck. You save money on the down payment and on the interest rate.
FHA loans are subsidized by the government for first time home buyers. The great advantage to a FHA loan is that your rate is cheap and your down payment is low.
But do not despair if you don't qualify for a FHA loan. You can still apply to other programs that will help you get into a house. Obviously the worse your credit is the more that you will pay out in fees but you can still get a house.
Your last good option is to just save a lot of money. If you are willing to put 20% down then you have a really good chance to qualify for a home loan even if your credit is bad.
About the Author:
Gordon can help you to find bad credit home mortgages or other types of home loans for bad credit.
posted by Credit Counseling at
8:01 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home