Obtaining Home Ownership and A Mortgage Despite Having Bad Credit
If you've had credit issues in the past, you may be inclined to think you're not able to get a mortgage. Many times, there are still ways to realize your dream of home ownership, even with less than ideal credit. Many times you can get a mortgage with bad credit, you just have to dig a little deeper.
Many things can happen in your life beyond your control. Some of those things affect your credit score. It might be a relationship issue where the bills don't get paid on time, a medical issue with bills piling up or another issue in your life. Even though these things may lie in the past for you now, they still affect the mortgage rates and different types of mortgages you can get.
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.
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.
Always remember that you are not the only one that is currently struggling with bad credit. It may be harder to realize your dream because of what happened in the past, but when you achieve your goal you will know that is was all worth it.
Many things can happen in your life beyond your control. Some of those things affect your credit score. It might be a relationship issue where the bills don't get paid on time, a medical issue with bills piling up or another issue in your life. Even though these things may lie in the past for you now, they still affect the mortgage rates and different types of mortgages you can get.
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.
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.
Always remember that you are not the only one that is currently struggling with bad credit. It may be harder to realize your dream because of what happened in the past, but when you achieve your goal you will know that is was all worth it.
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
10:29 AM
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