Apartment living is the worst, who doesn’t want to live the American dream? There are so many people who believe that because of bad credit the American dream cannot be achieved. Well, the good news is, this is definitely a misconception. The actual credit score doesn’t necessarily mean you have bad credit. Lenders generally look more at your credit history rather than score. There are two types of loans for people with lower credit, either an FHA or a VA loan. Is there a bad credit no money down mortgage? No, but there are still solutions available.
An FHA loan is designed for people who have poor credit. The federal housing administration basically acts and insurance to the loan. They protect the lender in case the homeowner defaults on the loan.
It’s a huge difference compared to the 10% down payment on a conventional loan. You must have at least 12 months of perfect payment history on your credit score to qualify, as well as your debt to income ratio to be low. Lastly you must use the property for your permanent residence. Using the property for any type of rental is against regulations.
If you are a military veteran or are currently enlisted you could qualify for a VA loan. The VA loan was created to help our service men and women get into homes and house their families. The credit requirements are very low, and the residual income is easily achieved by most people. You must have a 12 month period of perfect payments on all debts. Spouses of military personnel are also eligible.
If you are tired of renting and are ready to be in your very own home now is the time to do it. Rates and home prices are historically low. There are many opportunities for you and your family to move into the home of dreams. So don’t procrastinate, and begin taking your steps towards a home.
Learn more about mortgages for first time buyers with bad credit and about mortgages for first time buyers with bad credit
