Obtaining Home Ownership and A Mortgage Despite Having Bad Credit
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.
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.
You may not have the financial reserves to make a substantial down payment on a home. If this is the case, a USDA loan could be the best option for your bad credit mortgage. This type of loan covers the entire buying sum of the home and sometimes it even covers a little bit more than that (102%). When you apply for a USDA loans, you are required to purchase a home somewhere in a rural area.
If you're a veteran, or you're serving in armed forces, a VA loan is an excellent option for you. VA loans get backed by the Veterans Administration. These sort of loans greatly increase your chances when applying for a mortgage, even if you currently have bad credit.
An FHA loan is a loan that is backed by the Federal Housing Authority. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. The FHA was founded to give as many people as possible the chance of owning their own home. An FHA loan is always worth looking into, even if your credit history is crisp clean.
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.
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.
You may not have the financial reserves to make a substantial down payment on a home. If this is the case, a USDA loan could be the best option for your bad credit mortgage. This type of loan covers the entire buying sum of the home and sometimes it even covers a little bit more than that (102%). When you apply for a USDA loans, you are required to purchase a home somewhere in a rural area.
If you're a veteran, or you're serving in armed forces, a VA loan is an excellent option for you. VA loans get backed by the Veterans Administration. These sort of loans greatly increase your chances when applying for a mortgage, even if you currently have bad credit.
An FHA loan is a loan that is backed by the Federal Housing Authority. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. The FHA was founded to give as many people as possible the chance of owning their own home. An FHA loan is always worth looking into, even if your credit history is crisp clean.
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 Debt Consolidation Loan at
10:28 AM
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