Getting A Mortgage With 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.
Some things may happen beyond your control that affect your credit score. It might be a relationship issue, a medical issue or another issue in your life. Even though these things may lie behind you now, they still affect the mortgage rates and mortgage types you can get at this moment.
If you have bad credit and you start your search for mortgage options, the best thing to consider is one of the options beyond the conventional methods of financing. There are many options, but in this article we will focus on three good examples: 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 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.
The federal Housing Authority backs up FHA. The FHA was founded with the purpose of realizing the dream of home ownership for as many people as possible. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. These kind of loans are always worth investigating, because they provide numerous benefits, no matter what your credit score is.
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.
Some things may happen beyond your control that affect your credit score. It might be a relationship issue, a medical issue or another issue in your life. Even though these things may lie behind you now, they still affect the mortgage rates and mortgage types you can get at this moment.
If you have bad credit and you start your search for mortgage options, the best thing to consider is one of the options beyond the conventional methods of financing. There are many options, but in this article we will focus on three good examples: 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 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.
The federal Housing Authority backs up FHA. The FHA was founded with the purpose of realizing the dream of home ownership for as many people as possible. Even if you currently have bad credit, it's possible that you are eligible for an FHA mortgage. These kind of loans are always worth investigating, because they provide numerous benefits, no matter what your credit score is.
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
10:01 AM
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