If you have bad credit and want a home loan then don't worry. You have options regardless of your credit history. There will of course be a few catches but there is hope.
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.
Now that you have the report you should make sure that it is accurate. A lot of people have bad credit but some of the items are incorrect. The difference between a 500 score and a 600 score can be thousands of dollars.
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.
When you get denied for a FHA loan you then have to apply for other loans. Call your bank and ask if they offer high interest home loans. If conditions are right they may be more then happy or not happy at all. But you have that option. If they cant help you then talk to your mortgage broker who would qualify you.
Of course the last option is also the best one. Just go save a lot of money and put 20% down. If you do this you will not only qualify but save thousands of dollars in interest charges.
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.
Now that you have the report you should make sure that it is accurate. A lot of people have bad credit but some of the items are incorrect. The difference between a 500 score and a 600 score can be thousands of dollars.
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.
When you get denied for a FHA loan you then have to apply for other loans. Call your bank and ask if they offer high interest home loans. If conditions are right they may be more then happy or not happy at all. But you have that option. If they cant help you then talk to your mortgage broker who would qualify you.
Of course the last option is also the best one. Just go save a lot of money and put 20% down. If you do this you will not only qualify but save thousands of dollars in interest charges.
About the Author:
Gordon helps future home owners to find mortgage loans bad credit and shows people that already own homes to find an equity based bad credit mortgage loan.
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