Obtaining A Bad Credit Mortgage
If your credit history isn't particularly good, you may think you're not able to get a mortgage and realize your dream of being a home owner. In reality, you can get a mortgage with bad credit, you just have to look a little harder.
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.
When you're looking for a mortgage with bad credit, you're best off by considering one of the options beyond conventional methods of financing. Three good examples are: USDA loans, VA loans, or FHA loans.
If you have very little money to put down on a house, USDA loans may be the right option for a bad credit mortgage. With a USDA loan, the entire cost of the home will be covered, and sometimes a little more. These kind of mortgages do require you to purchase a home in a rural area.
If you are currently working in armed forces, or if you're a veteran, you may be eligible for a VA loan. These loans are backed by the Veterans Administration. This fact increases your chances when applying for a mortgage, even with 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.
Remember, you are not the only one struggling with bad credit. There are a lot of options available for you. It might be harder and you might have to dig deeper... but in the end it's worth it.
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.
When you're looking for a mortgage with bad credit, you're best off by considering one of the options beyond conventional methods of financing. Three good examples are: USDA loans, VA loans, or FHA loans.
If you have very little money to put down on a house, USDA loans may be the right option for a bad credit mortgage. With a USDA loan, the entire cost of the home will be covered, and sometimes a little more. These kind of mortgages do require you to purchase a home in a rural area.
If you are currently working in armed forces, or if you're a veteran, you may be eligible for a VA loan. These loans are backed by the Veterans Administration. This fact increases your chances when applying for a mortgage, even with 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.
Remember, you are not the only one struggling with bad credit. There are a lot of options available for you. It might be harder and you might have to dig deeper... but in the end it's worth it.
About the Author:
Esther writes mortgage articles in English, she also writes articles about hypotheek and aflossingsvrije hypotheek in Dutch.
posted by Credit Counseling at
12:08 AM
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