Getting a Home Loan with Poor Credit
When you attempt to obtain a home mortgage loan through a traditional lender, you’re likely to quickly encounter queries about your credit. Having good credit is usually an integral part of getting approved for a home mortgage. Therefore, people with bad credit tend to think that home ownership is not a possibility for them.
Not all lenders are as strict on creditworthiness as others, however. Loans from the Federal Housing Authority (FHA) are backed by the federal government and can be issued to individuals with poor credit histories. These loans are sometimes called “Bad Credit Mortgages” and can enable you to get into a home of your own, despite your lousy credit.
Finding your nerve
Applying for a mortgage loan can be intimidating. There are so many questions you find yourself asking: Can I afford a nice house? What will it cost in the long run? How much do I need to have saved for a down payment? Once you get up the nerve to apply, getting rejected can be even more confusing.
Figuring out how to purchase a home after a lender said you weren’t worthy is difficult. Fortunately, the loans offered by the FHA are issued under more relaxed guidelines than a traditional lender. For that reason, you may still qualify, even if a bank said you don’t.
One of the things that can make it so difficult to 1) apply for a mortgage and 2) handle getting rejected are that most people feel as if they have to go through it alone. You don’t! There are many resources available on the internet to help you learn about the process of getting a home loan. Take advantage of them.
There are private professionals as well as employees of the FHA who can help explain to you what exactly you need to do to qualify for a bad credit mortgage loan. Regardless of what’s going on in your financial life, they will have someone available to assist you in the process of getting approved.