Texas Bad Credit Mortgage Loans

Texas Bad Credit Mortgage Information

With the downturn in the economy, many people are finding that they have “bad credit” due to unexpected circumstances such as job loss, foreclosure, etc. and are wondering what there mortgage options are here in Texas.

Today’s qualification standards are different than they were even 2 years ago and it is now very difficult to get a mortgage here in Texas until you “fix” your credit. Fixing your credit typically involves working with a credit repair firm to clear up any inaccurate or untrue information on your credit report and can result in a significant increase in your credit scores.

Texas Loan Options For Bad Credit

In today’s mortgage market, the best option available for people with less than perfect credit is either a Texas FHA loan or a Texas VA loan. Recently, many lenders now require that the minimum credit score for anyone who wants to get an FHA or VA loan is a 620.

A 620 credit score is not a great credit score – but many people will need to work to get to that 620 score before they can qualify for a FHA or VA loan.

What If You Don’t Qualify For an FHA or VA Loan?

For whatever reason, if you don’t qualify or want to pursue a FHA or VA loan, there are still other options such as seller financing, private financing or even loans traditionally known as “hard money” loans.  Typically hard money loans will be used when you can put a significant amount of money down on a property to meet the loan-to-value requirements of the hard money lender.

What is the current “magic number” for your credit score. Well, while it isn’t exactly “magic”, we do see that most programs (not all!) are requiring at least a 620 mid score in order to have a chance at an approval for a loan.

Call now to speak with a loan officer and see what options are available for your unique situation.