Home Ownership and Mortgages for Those with Bad Credit Scores
Posted by Foreclosure Prevention in Real EstateIf you have poor credit or past credit challenges, it’s still possible to get into a home and soon. Whether you have low savings, high debt ratios or past credit issues, there are programs available that can help you become a homeowner at a reasonable interest rate. For information on those programs, keep reading.
FHA – Federal Housing Administration Loans
FHA loans are insured by the federal government. This means if a loan is defaulted, then the government has insured the loan. However, what does that cover? Well, it means lenders can offer their mortgages to people with lower incomes, limited savings or less-than-perfect credit.
It also benefits that you won’t have to pay for private mortgage insurance either monthly or up front. This could save you thousands of dollars every year.
Wells Fargo Home Credit Solutions
Wells Fargo, a unique and versatile mortgage lender, offers a program called Home Credit Solutions. Despite past credit problems, they offer mortgage solutions that can fit a wide range of credit backgrounds and offer people a second chance to rebuild their credit through responsible home ownership.
The program also includes a StepsToSuccess education program that assists customers in learning how to manage their finances, use tools that will help them improve their credit, and access services that will teach them how to manage their money. This can all be done at their own pace.
Their goal is to get you into a home and a payment plan that you can afford, as well as offer you a home ownership plan that’s suited toward your credit rating profile.
VA – Department of Veterans Affairs Loans
Like an FHA loan, but insured by the Department of Veterans Affairs, this loan program offers 100% financing to veterans who have limited savings, possibly low incomes, and looser credit score requirements. Because the loan is insured by VA, lenders can be more flexible in their loan qualification requirements. So, if you have poor credit, but you or your spouse is a veteran, you may still be able to lock into a home mortgage.
Before you dial that number you saw advertising “Bad Credit? No Problem,” ask yourself if you really trust that financial provider. Because people with bad credit problems are in a vulnerable financial position, they’re more susceptible to potential scams and other unethical acts.
So, before you pay a credit fixer, or write a check for fees to cover a mortgage application, make sure the agent is registered, certified and has a solid reputation with your state’s mortgage professional association.
Entries (RSS)