Part of the American dream is owning your own home. There was a time when doing so simply meant either having good credit or having a down payment. With the credit crunch continuing, 100% financing has disappeared. So has subprime lending, which once gave just about anyone a bad credit home mortgage, just as long as they could put together some sort of down payment. So, what are your options if you have bad credit and would like to buy a home?
Get serious about credit restoration first!
If you are serious about owning a home, it is time to buckle down. You are going to have to develop a serious plan of attack to improve your credit score. The first thing you will want to do is get a copy of your credit report and score. You will need to either pay for your score or sign up for a credit monitoring service that offers your score as part of their free trial. Another option is to go ahead and find a mortgage broker to work with and have them pull your credit for you. (This only works to your advantage provided you find someone who doesn’t charge an upfront application fee.) Once you have your credit report, you need to develop a credit restoration plan and follow through with your plan each week.
FHA is the new bad credit mortgage
Your ultimate goal of credit repair is to get your credit score to at least 620. The reason for this is that with subprime lending having disappeared, the best mortgage for people that don’t have great credit is an FHA loan. While there are various qualifications that you will need to meet, one of the most important is having a credit score of at least 620. You will also need a solid work history, minimal debt load and the ability to verify your income.
Related posts:
- Bad Credit Mortgage Refinance is a Possibility
- Getting A Bad Credit Mortgage
- How to get the Cheapest Mortgage
- Your Credit Score and Getting a Mortgage
- Bad Credit Mortgage Loan
- Credit History Mortgage
- Low Mortgage Rates
- First Home Buyer Mortgage
