Bad Credit Home Loans
Too many people are afraid that due to bad credit they will never be able to buy a home. This article is about bad credit home loans. By following a few simple steps you will be able to buy a home regardless of your credit.
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.
Now that you know what your credit situation is you can go about applying for different types of loans. If you are new to home buying you will want to try out the FHA program first.
The government subsidizes FHA loans so that people will be able to afford their first home. If you have had a few homes you may have a hard time getting an FHA loan. That is fine because you can apply for other types of loans.
If you don't qualify for a FHA loan you still have options. Depending upon overall economic conditions some banks can be very lax and they don't require a lot. Other times they will just charge you a high interest rate.
The safest option but also the hardest is to just save up and put a lot of money down on the house. If you put 20% or more down on your house you will save a lot and it will be easy to get approved.
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.
Now that you know what your credit situation is you can go about applying for different types of loans. If you are new to home buying you will want to try out the FHA program first.
The government subsidizes FHA loans so that people will be able to afford their first home. If you have had a few homes you may have a hard time getting an FHA loan. That is fine because you can apply for other types of loans.
If you don't qualify for a FHA loan you still have options. Depending upon overall economic conditions some banks can be very lax and they don't require a lot. Other times they will just charge you a high interest rate.
The safest option but also the hardest is to just save up and put a lot of money down on the house. If you put 20% or more down on your house you will save a lot and it will be easy to get approved.
About the Author:
Gordon inspires people to find mortgages for people with bad credit and equity based home loans with bad credit.
posted by Credit Counseling at
8:01 AM
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