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

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

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

Finance Blogs