Factors To Think About With Bad Credit Mortgages
Paying rent can be such a difficult thing to do. It feels like you are throwing money down the toilet every month. When you are paying a mortgage you are actually heading towards owning something and not paying someone else’s bills. So why not make the change and buy a home? Let me guess, bad credit is stopping you from achieving this dream? Well fret no more because there is an answer to your problem, an FHA or a VA loan.
The FHA loan was created for lower income houses and people with bad credit. The down payment for these loans is only 3.5% of the total lending price. This is the first thing that attracts people to FHA loans.
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.
To give back to our military personnel the VA loan was created. You must either be a veteran, or currently enlisted, or a spouse of said above. These loans are generally easy to qualify for. The credit limit is low, and the residual household income is easy to obtain. The biggest thing they look for when qualifying people for these loans is your credit history and prior delinquencies. You must 12 months free of any delinquent payments on your credit.
Now that you have a little bit of a better idea on how you can qualify for a loan with your bad credit. Even if your credit isn’t quite up to par and you have recent delinquencies, now you know that only 12 months of positive payments is all it takes. So get your finances on track and prepare to be a home owner.
Learn more about mortgages for bad credit people and about mortgages for bad credit people
categories: real estate,mortgage,bad credit mortgages,fha mortgage,va mortgage,house payment,credit repair,credit history,credit score
