Free Personal Finance & Budgetting Articles

Professional Authors - Professional Articles

Getting a Home with Bad Credit

Having bad credit doesn't always mean that you won't be able to buy your own home. It is true though that a lot of lenders will not be willing to write you up a conventional type of mortgage if you have bad credit. You can try and get an FHA or a VA home loan instead of going with a traditional lender. Once you qualify for either one of these an approval for a home loan is basically assured, although it may not be right away. It all depends upon the state in which you live so it could take a few years to qualify.

The Fede4ral Housing Authority has been around since 1935 and have been helping millions of Americans that have past credit problems as well as limited incomes to get homes. The VA has been do the same thing since 1944 when they created the GI Bill. Both of these organizations have flexible credit policies and are include home buyers who have shown a consistent patterns of being responsibly financially even if they have bad credit from their past. The standards for qualifying with both the FHA and VA are pretty much the same with just a few minor differences. If their criteria are met then they will both guarantee the buyer home loans, this even includes those who may have very small down payments or none at all.

In order to qualify you will need a credit score of 580 or higher and you should have no more than one bill that has been 30 days late in the past two years. Your bills need to be current and most of them need to be paid on time for one to two straight years. The FHA policy is to make sure there is an overall pattern of handling of credit responsibly, so if there are any infrequent lapses this won't disqualify you. One of the most important things is that you have some sort of proof that you have paid your current rent on time for the past year. You will need to provide them with your landlords name, address and phone number.

If you have never had credit this would mean then that the FHA and the VA both would simply waive the credit score requirement. They will accept records of rent, utilities and phone bills for the last year instead of any credit payment statements. If you have had bankruptcy you will be considered if you can show you have had a clean record for two to three years after the bankruptcy.

You will also need to have steady work history for the last two years, and with a stable income that appears to be stable. There is a limit set down by the FHA with regard to the mortgage payments being no more than 30% of your gross income. You need to show how much you make so they can figure out how much they think that you can afford. You will need to either show them your tax returns or your W-2 forms for the past two years and if self-employed you will need some sort of tax paperwork for the past three years.

In order to meet the eligibility requirements for a VA loan you need to have only served 181 days or just 90 days if in wartime and must not have a dishonorable discharge. You need to fill out the VA form 26-1880 and provide them with your DD-214 or military discharge papers. Their requirements are pretty much the same except their limit is 41% of your gross income can be used in paying bills and a mortgage.

Post has no comments.
Post a Comment

Captcha Image

true market value interest rate trade in value estate planning errors meat specials fast paced family member salvage groceries creditors mortgage payments secured loan debt management company shop online employees saving money pay bills financial power car lot best credit repair credit payroll poor credit stock market leasing company spend less grocery shopping home loan property tax handling problems property value structured settlement money conscious estate planning half price insurance company afford a car bankruptcy dealership party theme credit policies reduce interest car lease W-4 forms retirement planning sticker price veteran loan own business qualified veteran legal power test drives household tips make a will invitations research cash certain stocks finance tips planning voluntary deductions avoid personal bankruptcy need maternity care emergency spending owe money reality get rid of debt finance tips bad credit periodic payments finance company car insurance debts manager specials unsecured loan income quiet time finances health insurance coupons retirement years financial agent sticker shock major debt banners budget insurance decorations car payments home equity loan reduce tax personal finance credit score personal finance tips start investing getting a loan new car smell financial affairs overspending car sites credit lower tax managing time enjoying rebates local dealer specials debt settlement medical history get help getting health insurance financial issues estate planning lawyer homemade food time management lease takeover payment range secure finances car dealer right estate planning lawyer assessor estimate personal finance resources grocery list personal bankruptcy major financial issues net pay financial basis car finance birthday party payroll software package va loan possibility debt management social security number different models quick sale car loan self help printer compare prices medicare common estate planning attorney save money law firm loan possibility enough money new car computer retirement fund home improvement loan stop paying wills party supplies balloons improvement loan good credit income tax gross pay tight budget car payment cash flow actual loan store ads payment plan dream present car power of attorney top preparing dinner buying a home gross income car chapter 7 stop procrastinating community property miss payments money issues financial crisis personal finances discounted items

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs