House Buying with Bad Credit

Putting a payment down or getting declined can be really anxiety-inducing. Especially when bad credit can affect your interest rate, you don’t that to get in your way of your future home. Even with a bankruptcy or a foreclosure, you still have a great chance of getting a mortgage without putting too much down and high rates. If you’ve been interested in buying a home and worried about your bad credit getting in the way, we’ve got a few tips to help you get peace of mind.

 

Documents

Gather up all your documents beforehand you go to your lender. That way, you both know your ability to be financial responsible. It’s a good idea to bring any tax forms or any major financial decisions.

 

Cosigners

Whether you need help securing your mortgage because of a poor credit rating or just not enough credit history, a cosigner can be a great way to reduce the financial burden. Remember, having a cosigner means that they also have responsibility for the loan itself. So if you default on the mortgage, it fully becomes their problem as well. Make sure the cosigner has a good credit history in addition of knowing the risks of this decision.

 

FHA Loan

A mortgage that is insured by the government and puts many lenders in the program. A very simple and easier way for many people to get a mortgage loan. It has even lower credit score requirement than the traditional loan. Check out our other articles on FHA Loans for more, detailed information.

>>Are you financially responsible? Click here to find out!<<

Buying a home with bad credit may be difficult, but with these tips will aid the process. Check out our article on Improving Credit Score For Housing or How to Prove You Are Financially Responsible for more information!

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As a blog writer, Jessica gets to mix her passion for creative writing with her love for helping others. As native California resident, she shares her free time with Disneyland, outdoor adventures, and her dog.

1 COMMENT

  1. No hope for us… Got mixed up in home loan modification scam. Now we r losing our home. Been here 26 years, but they say we r not credit worthy. Husband was retiring…we were trying to reduce out 9.38% interest to lower our house pmt. Home not in good enuf shape to sell. We have no equity. Our house pmt only paid interest ,taxes, n escrow to keep the pmt lower at $1,501.00 a month for a $150,000 home. So 9 of us, 5 children, a daughter in law with terminal cancer-2 kids, n my daughter who is currently mentally disabled n in a treatment facility -her 3 kids, my husband n myself will all be homeless! Was hoping our taxes will get here in time to pay all the back house pmts but the IRS found a way to detain the $. Will be 9-12 weeks before we get our taxes back. Any suggestions?

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