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.
One of the first things that you must do is find out what your credit score is. If you go to a mortgage broker they can pull this report up for you and print it out.
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.
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.
One of the first things that you must do is find out what your credit score is. If you go to a mortgage broker they can pull this report up for you and print it out.
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.
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 findsmortgages with bad credit for people that needs his help and also writes about other home loans for people with bad credit such as equity loans.
posted by Credit Counseling at
9:14 AM
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