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

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

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

Finance Blogs