Home Loans for Credit Challenged Borrowers
Horace Hawkins
Just because you have negative items on your credit report doesn't mean you can't obtain a home mortgage loan. There are options for you. Bad credit is not the end of the world. It's true that getting a bad credit mortgage loan is not always the easiest or fastest mortgage loan out there, but you can still buy your own home even with bad credit.
Bad credit shouldn’t stop you from getting a home loan. There are credit repair options. Most mortgage brokers will do everything they can to get your credit in good shape for your home loan. They work with you on finding the mortgage loan option that's right for you. You can get a home loan, even if you’ve had a bankruptcy or a foreclosure.
There are several bad credit mortgage loan options available for the credit challenged and even people with no credit at all, such as: • Sub-Prime Mortgage Home Loans • Stated Income Mortgages • No Money Down Home Loans • Jumbo Loans • Adjustable Rate Mortgages
Step One: Know Your True Credit Score
Perhaps you’ve already been turned down for a mortgage because of a negative credit report or having no credit at all. Perhaps you’ve filed for bankruptcy. Whatever the case may be—You know your credit is bad.
But do you know how bad?
Are you sure your credit report is accurate? Eighty percent of credit reports have mistakes. At Mortgage-Loan-Advantage.com we help you find out if your credit is really as bad as you think it is. Here's what we can help you do: • Get a copy of your credit report. • Verify the items listed on your credit report. • Take steps to repair any errors on your credit report. • Take steps to remove errors on your credit report. • Monitor your credit regularly.
Step Two: Consider Your Options
You really have two options, once you know what your credit score is. You can contact a bad credit mortgage lender and accept that for a while you must pay a higher interest rate than you would if your credit was perfect.
Or you can wait and try to fix your credit and bring up your credit score before you buy a home.
If your credit history is not that bad, you might want to take some time to bring up your score. To improve your credit score: • Pay off as much debt as you can. • Pay your bills regularly and on time. • Don’t apply for too much credit.
If you absolutely must get into a home now, or it looks like it would take too long to bring up your credit score significantly, contact a bad credit mortgage lender. Be prepared to pay a higher interest rate and more “points”—which are a percentage of the loan.
Step Three: Prepare Yourself with the Facts
Before you approach a bad credit mortgage lender, prepare.
Assess your financial situation. Do you have the income to add a mortgage to your debt load? Have you made as many lifestyle changes as possible to reduce your debt? Have you done all you can to bring up your credit score?
If the adverse credit items on your credit report occurred because of some reasons beyond your control, for instance, illness, job layoff, marital problems or other temporary setbacks, you must provide a written explanation of your circumstances to the bad mortgage loan officer. This can be provided with the loan application or at some other point in the loan process. If you have had sufficient time to regain financial stability since the problems occurred and to demonstrate prompt payment, the lender may offer some consideration on the rates.
About the author: Horace Hawkins is the President of Mortgage-Loan-Advantage.com and HoraceHawkins.com. As a mortgage loan broker, Horace serves the Dallas Fort Worth Metroplex with superior home mortgage loan services.
The latest information and news on Credit Repair:
A credit repair operation has agreed to stop making false claims and stop charging up-front fees under a settlement with the Federal Trade Commission.
Tech center concurrent credit courses jump
JONESBORO ? The number of courses offered for concurrent college credit to students at the NEA Career and Technical Center jumped this year, director Lisa Trotter said.
Car rental claim wasn't up to scratch
QI hope you can help me with a dubious repair bill I received. I rented a car from Enterprise in Newark recently, and we did a cursory walk-around inspection with the agent in the rain.
Fire not keeping SP business down
Even as Certified Auto Repair was burning, people started to rally behind the business.
Panel: Boost S.C. gas tax to repair roads
Tax experts recommend South Carolina drivers pay 5 cents a gallon more for unleaded gas to generate $150 million more each year for road repair.
V-Shaped Dreams Evaporate
The U.S. must brace itself for a long period of below-potential growth.
Enterprise charged me for damage I didn't do
Q: I hope you can help me with a dubious repair bill I received. I rented a car from Enterprise in Newark recently, and we did a cursory walk-around inspection with the agent in the rain. The agent did not mark the "no damage" box on the contract, but I did... Star Trek: Enterprise - Health - Enterprise - Support Groups - Newark
Credit Union refunds mysterious security fee
Dear Greg: Eight years ago I opened an account at Partners Credit Union. It was just a savings account ? no checking or ATM card. A couple of months ago while checking my statement, I noticed they've been taking $8.95 a month out of my account since September 2009 for some kind of fraud protection I supposedly signed up for. I would never sign up for something like that. I called the credit ...
Fannie Mae tries to stimulate market for foreclosed homes
The mortgage giant quietly launches the HomePath program, which offers subprime-era terms for buyers: minimal down payments, no appraisals, no mortgage insurance and lower minimum credit scores. If you're a buyer with little cash or a small-scale investor looking for a deal on a foreclosed house, a little-publicized national lending program could be just what you need this fall.
Obama Plans New Steps to Boost Economic Growth, Jobs
President Barack Obama promised to roll out ?new ideas? to boost growth and spur hiring next week as he embarks on economy-focused trips to the Midwest with less than two months until congressional elections.