Obtaining A Bad Credit Mortgage
If you've dealt with credit issues in the past, you may think home ownership is impossible for you. Because of the fact that many people have dealt with bad credit in the past, there are many options to still get a mortgage and realize home ownership, despite having a less than stellar credit score.
Things happen in your life that are beyond your control. Some of those things have consequences that affect your credit score. It might be a medical issue with bills piling up or a relationship issue where the bills don't get paid on time. There are numerous examples. And even though you want to move on with your life, these things still affect the kind of mortgage you can get and the mortgage rates you're going to get quoted.
If you're looking for a bad credit mortgage, the best thing to do is to consider a USDA, VA, or FHA loan. The conventional methods of financing might not be available in your situation.
If you don't have the reserves to make a substantial down payment on a home, a USDA loan could be the best option for a bad credit mortgage. A USDA loan usually covers the entire buying sum of the home. Sometimes even a little bit more than that (102%). USDA loans do require that you purchase a home somewhere in a rural area.
If you're a veteran, or you're serving in armed forces, applying for a VA loan may just be the best option for you. These kind of loans are backed up by the Veterans Administration. VA loans greatly improve your chances of getting a mortgage, even when you have bad credit.
FHA loans are backed by the Federal Housing Authority. The FHA was founded with the purpose of giving people a chance to achieve home ownership. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. An FHA loan is almost always worth looking into because of the numerous benefits, even if you have crisp clean credit.
If you have bad credit, you are not the only one. Many people encounter problems with their credit reports. There are many options available for you, so even if it's harder, you can still realize your dream of home ownership.
Things happen in your life that are beyond your control. Some of those things have consequences that affect your credit score. It might be a medical issue with bills piling up or a relationship issue where the bills don't get paid on time. There are numerous examples. And even though you want to move on with your life, these things still affect the kind of mortgage you can get and the mortgage rates you're going to get quoted.
If you're looking for a bad credit mortgage, the best thing to do is to consider a USDA, VA, or FHA loan. The conventional methods of financing might not be available in your situation.
If you don't have the reserves to make a substantial down payment on a home, a USDA loan could be the best option for a bad credit mortgage. A USDA loan usually covers the entire buying sum of the home. Sometimes even a little bit more than that (102%). USDA loans do require that you purchase a home somewhere in a rural area.
If you're a veteran, or you're serving in armed forces, applying for a VA loan may just be the best option for you. These kind of loans are backed up by the Veterans Administration. VA loans greatly improve your chances of getting a mortgage, even when you have bad credit.
FHA loans are backed by the Federal Housing Authority. The FHA was founded with the purpose of giving people a chance to achieve home ownership. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. An FHA loan is almost always worth looking into because of the numerous benefits, even if you have crisp clean credit.
If you have bad credit, you are not the only one. Many people encounter problems with their credit reports. There are many options available for you, so even if it's harder, you can still realize your dream of home ownership.
About the Author:
Esther writes mortgage articles in English, she also writes articles about rente hypotheek and aflossingsvrije hypotheken in Dutch.
posted by Credit Counseling at
10:20 AM
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