Filed under: Home Loans With Bad Credit - Pinned
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Some people want the white picket fence, others want hundreds of acres and still others want to live in high rise condominiums that have the perfect views of the city below. It doesn’t matter what someone buys, it’s the point that it is where they call home. Unfortunately, many people struggle with finding the financial backing from banks because of their past credit problems.
If you’ve ever defaulted or had to file bankruptcy then your credit can be permanently marred because of it and this blemish could inhibit your eligibility to get a loan. Fortunately there are several ways that you could go about securing a loan that you could then use to buy your own home. A few easy ways to get a loan if you don’t have the greatest credit are to first, secure a large down payment, then use all options available to you to get a low interest rate and finally, just be sure that you can make your payments.
Once you have a large down payment banks will look at it as a sign that you are responsible with money and also that there is less of a risk on the loan. After you’ve accumulated a sizable down payment you can begin looking into financial institutions that will facilitate your needs. In many cases you will need to look into some help from the government as you can secure the best interest rates with the least amount of capital from institutions that work with the FHA. Finally, you need to be absolutely sure that, even on a bad month, you will be able to make your payments. If you have any doubt about making the payment, move on to a smaller loan, even if it means a smaller home.
Filed under: Home Loans With Bad Credit - 08 Mar 2011 | Spread the word !
No one wants to have bad credit. The reason no one wants this floating above their head is because bad credit makes many things in life much more difficult. One of the things that people with bad credit commonly worry about is being able to obtain a home loan. Although they realize how badly they need this loan, people with bad credit are concerned that they won’t be able to get it because lenders won’t want to work with them. Fortunately, if you are in this situation, there are steps you can take to still get a home loan in spite of your bad credit.
The key to getting a home loan in this situation is to find a lender who specializes in working with people in your situation. Before all of the turmoil in the housing market, there were quite a few lenders who made this their specialty. However, after everything that happened, many companies shut down or moved their focus to other areas. The companies who remained in this field realized that they needed to follow stricter guidelines for their lending. Although this may make you nervous, it doesn’t mean that you can’t get a home loan. It simply means that you will need to supply them with more information, as well as ensure that you’re in compliance with all of their rules and regulations.
While getting a home loan with bad credit can take more time than obtaining one with good credit, as long as you remain persistent, you should be able to get the loan that you need.
Filed under: Home Loans With Bad Credit - 02 Jul 2010 | Spread the word !
Your credit is the lifeblood of your financial life. Without it you can get absolutely nothing financed. Your credit score ideally should be in the range between 670 and up. The problem is that a lot of people out there don’t have the most pristine of credit. This can become a definite problem if you want to get a home loan. We will discuss the implications of getting a first time home loan with bad credit and what to do about it.
If you talk to any loan officer about getting a first time home loan the first thing they will do is a preliminary survey on you, ultimately ending with the permission to run a check on your credit score. If your credit score is bad (considering that it is below 600) you may have a very difficult time funding the loan.
Generally, the higher your credit score the more money you will qualify for. With a bad credit score you may be turned away or you may not get exactly what you were looking for in price. You have a couple of options if you run into this problem.
First option is you can save at least 15% to 20% of the loan up and use it as a down payment. Most mortgage companies will overlook an ok credit score if you have cash to put down. You must be able to give them some kind of insurance that you won’t default. Second option is you can get a co-signee with excellent credit to intercede for you. If have a close friend or family member, this will encourage the company to deal with you a lot more to help get the loan that you need.
Filed under: Home Loans With Bad Credit - 22 Apr 2010 | Spread the word !
Owning your own home is a dream that nearly everyone can relate to. Unfortunately, many people may not qualify for a standard home loan if they have encountered credit issues of any kind as there will be an issue in a lender qualifying them for a loan appropriate for the cost of the home. The problem of bad credit can affect more than just your average person and in some cases it can hit veterans especially hard as they may not always be able to attend to issues immediately. Thankfully, there are ways that veterans can buy the home of their dreams quite easily if they know how to fully take advantage of their VA benefits.
One of the most commonly overlooked facts is that any veteran with a general or honorable discharge can qualify for a loan that can be used to buy a home with no down payment. This benefit can greatly increase the buying power of the veteran as they will no longer have to worry about coming up with thousands of dollars immediately after serving their country in order to ensure there is a roof over their family’s heads.
Some of the key points about veterans using their VA benefits to buy a home loan is that they are useful for their spouses as well. In the event that the serving spouse is KIA MIA or listed as a prisoner of war, the stateside spouse may use the benefits to secure an existing home, VA-approved condo or townhome, a new home or a manufactured home. Furthermore, if you can pay off your loan sooner than expected, you will not be charged a penalty for doing so. You also have the ability to use the benefits a second time if you had to give up your home under the right circumstances.
Filed under: Home Loans With Bad Credit - 29 Mar 2010 | Spread the word !
The use of home loans with bad credit is feasible. Having no money on a down payment is also possible with restrictions. It is important to remember that the fewer credentials (credit) that is applicable to the name and social security number associated to the borrower will end up closing doors for home loans. Home loans are very simple to deal with for those with better credit and may even be a breeze for them if they can offer everything that the lending institution asks of them. To be able to qualify for a home loan with bad credit and no money down, the following are usually necessary:
Adequate Collateral – purchasing a home that is of proper value to equal or surpass the loan amount. This means that the home which is being purchased will need to be valuable enough to make the lender money if the person cannot afford the loan.
Fixed Rate Options – making a rate fixed to receive the maximum amount of profit once the loan is paid off completely. Some lenders offer lower rates for those individuals with bad credit (no credit history or are first time homeowners) and do not wish to put money down.
Prequalification Options – applicants who wish to prequalify for the loans before applying will need to be able to provide proof of Income and several pieces of personal information to be able to prequalify. This allows them to understand what they will be getting so they can accept the amount offered.
There are several types of loans which are offered under this model of bad credit/no money down options. They are usually offered as 100% purchase loans, conventional loans, FHA home loans, VA home loans and 125% equity loans with no equity.