October 16, 2012

How to Buy a Home with Bad Credit

Yes, it is possible to buy a home with bad credit

Having good credit is important if you want to purchase a house. Good credit opens doors to loan availability and good interest rates. However, if you have bad credit and want to buy a home, there are only a few options available to you. The best recommendation is to wait it out, improve your credit score and then apply for a traditional mortgage. It takes a year or two of assiduous effort to raise your credit score high enough to enable you to qualify for a low interest rate home loan. There are several ways you can help to repair your credit score.

Apply for a "bad credit home loan
If you do not want to wait the average 24 months to get your credit up to par, and you need a house right away, the other option is to seek out a bad credit home loan, also called a subprime loan. Subprime mortgages charge exorbitant interest rates. Be certain you can afford to make the monthly payments. The housing crisis of 2008-2010 imposed severe restrictions on banks and lenders with respect to the interest rates and origination fees they are allowed to charge. Keep in mind that income verification will be required.

Find the best rates
If you do opt for a bad credit mortgage, spend time looking online for the best mortgage rates. There is an abundance of online poor credit lenders who would willingly be available. Regardless of which type of loan you are applying for, it is important to spend time researching the best mortgage rates and evaluating the history of the lender. Even with bad credit, it is possible to buy a home.


Speak with a Mortgage Specialist to discuss any questions
Contact US Mortgage Corporation toll free: 1-800-562-6715

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