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Friday, February 13, 2009
Too many people are afraid that due to bad credit they will never be able to buy a home. This article is about bad credit home loans. By following a few simple steps you will be able to buy a home regardless of your credit.
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.
To begin with you should go and get your credit history. If you are trying to use a mortgage broker then you can ask them for a credit history. Using a broker will save you money because you can get the report for free.
Once you have your report in hand you should go through it and make sure that it is accurate. If you have been bad at paying bills then your report will stink. But if you are lucky you will have a few things that are wrong. A quick letter to the service bureaus will fix it.
When you have finished fixing your credit history you will likely have a better chance at getting a home loan even with your bad credit. The first option you will want to apply for is a FHA loan.
FHA loans are subsidized by the government for first time home buyers. The great advantage to a FHA loan is that your rate is cheap and your down payment is low.
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.
To begin with you should go and get your credit history. If you are trying to use a mortgage broker then you can ask them for a credit history. Using a broker will save you money because you can get the report for free.
Once you have your report in hand you should go through it and make sure that it is accurate. If you have been bad at paying bills then your report will stink. But if you are lucky you will have a few things that are wrong. A quick letter to the service bureaus will fix it.
When you have finished fixing your credit history you will likely have a better chance at getting a home loan even with your bad credit. The first option you will want to apply for is a FHA loan.
FHA loans are subsidized by the government for first time home buyers. The great advantage to a FHA loan is that your rate is cheap and your down payment is low.
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 creates detailed help lessons that show people to locate and understand mortgages bad credit and instructs them about other types of home loans with bad credit including home equity loans.
posted by Credit Counseling at
11:36 AM
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