| Things To Consider When Looking At Bad Credit Mortgages |
| Articles - Mortgage |
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Apartment living is the worst, who doesn't want to live the American dream? There are so many people who believe that because of bad credit the American dream cannot be achieved. Well, the good news is, this is definitely a misconception. The actual credit score doesn't necessarily mean you have bad credit. Lenders generally look more at your credit history rather than score. There are two types of loans for people with lower credit, either an FHA or a VA loan.
Apartment living is the worst, who doesn't want to live the American dream? There are so many people who believe that because of bad credit the American dream cannot be achieved. Well, the good news is, this is definitely a misconception. The actual credit score doesn't necessarily mean you have bad credit. Lenders generally look more at your credit history rather than score. There are two types of loans for people with lower credit, either an FHA or a VA loan. An FHA loan is designed for people who have poor credit. The federal housing administration basically acts and insurance to the loan. They protect the lender in case the homeowner defaults on the loan. This makes it so the down payment is only 3.5 % which is significantly less than a conventional loan at 10 %. The main requirements are the property you are purchasing must be your primary residence, you must have at least 12 months free of delinquent payments, and your debt to income ratio needs to be low. If you are a military veteran or are currently enlisted you could qualify for a VA loan. The VA loan was created to help our service men and women get into homes and house their families. The credit requirements are very low, and the residual income is easily achieved by most people. You must have a 12 month period of perfect payments on all debts. Spouses of military personnel are also eligible. There are very people who could honestly tell you that they don't want to live the American dream. With these programs out there virtually anyone can save up and work towards getting into a home. Simply create a 12 month plan to get yourself on track and by next year you could be moving in to your very own home. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about mortgages for people with bad credit history and about mortgages for people with bad credit history |