HomEquityLineofCredit.org

Sponsored Links

Home Mortgage Loans For People With Bad Credit

By: Carrie Reeder

Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help
improve your chances of success:

Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase it, you may
have an easier time getting financing on that property. To the lender it may be almost as good as if you had some
kind of down payment on the property. Some lenders will consider the properties loan to value ratio when they
consider the loan. Talk to your mortgage broker and see if this factor could help you get qualified.

Try Creative Financing – See if the seller would be willing to carry back a second mortgage on the home. This is
where you set up a contract or agreement with the seller that you will pay them monthly payments, including
interest of, let’s say, $150/mo on $10,000 dollars of the price of the property, as a second mortgage. Then, to
make it nice for the seller, perhaps put in the agreement that the entire amount is due in full within 2 years or
something. That should give you plenty of time to refinance and then the seller doesn’t feel permanently locked
into the contract.

Save For A Down Payment – There are lenders who may be able to qualify you for 100% financing, even with low credit
scores, but your interest rate will be much lower if you can put even 3-5% down. If possible, try to save as much
as possible for a down payment. Sometimes it may be better to wait about 3-6 months to get into a new home loan if
it means the difference of having a down payment. The interest rate could be quite a bit better because of that
factor. However, if you don’t want to have a down payment, you can always refinance later for a lower interest
rate.

Shop Around – There are some mortgage brokers out there that you will talk to who will say, “I can’t help you, and
if I can’t help you, no one can help you.” But, if you persist in talking with other brokers, 10 minutes later you
could be talking to someone who knows a way to help you, no problem. Most brokers feel that if they can’t help you,
no one can. However, the ironic thing is that each broker is varied in the types of loans they can do. Some brokers
have relationships with flexible mortgage lenders and others do not. I recommend applying online to mortgage
services that will submit your application to multiple lenders. That way, your credit is only pulled once, and you
can analyze offers from multiple lenders. To see our list of recommended bad credit mortgage lenders, visit here
recommended bad credit mortgage lenders

Improve Your Credit Score – There are some really simple ways to improve your credit score without spending too
much time at it. All 3 major credit bureaus now have areas on their websites where you can dispute incorrect items
on your credit. The process is very quick and easy. Make your current payments on time to help your score. Keep
your number of credit inquiries down. Too many inquiries can hurt your credit score. If you want to buy a house,
don’t apply for any credit cards, auto loans or any other type of loan if you can avoid it. For your reference,
here are the links to all 3 major credit bureau’s websites: www.abcloanguide.com/credithelp.shtml

If you really do want to get into a home, don’t let bad credit stop you. There are lenders out there who can help
you, it just takes some persistence. Apply with multiple lenders. Like I said, apply with mortgage services that
specialize in bad credit mortgage loans and will submit your application to multiple lenders with only having one
credit inquiry.

Source: http://www.bestrefinancearticles.com/Article/Home-Mortgage-Loans-For-People-With-Bad-Credit/87