Financing A Home With Bad Credit
Is it impossible to finance a home with bad credit..?
no bankruptcy, foreclosures, or judgements.. nothing major like that.. just poor credit.
No it isn’t impossible to finance a home if you have bad credit but you will need to be realistic about your interest rate, loan program , and loan costs expectations. The most competitive rates and fees are offered only to those with good credit.
It is a bit like the “he who has the gold makes the rules” adage. The more of a challenge it is to get your financing, the narrower your choices are going to be.
A great deal depends on just how low your credit score actually is. If you can improve your score enough by making timely payments, paying off unpaid bills, etc. within the next 2 to 3 years that you could qualify for a better rate and program if you refinanced, you may want to consider taking a loan that is a fixed rate for 2 or three years at a lower rate than you could get for a 30 year fixed rate loan now. That loan may have a 2 or 3 year pre-payment penalty but as long as that pre-payment period does not exceed the term of the fixed rate you might benefit.
Some lenders also offer loans where the rate improves as your as agreed payment record continues.
Be careful, read everything, ask lots of questions, there are predatory lenders out there who prey on those in your circumstances.
Feel free to contact me for further information or to help you evaluate financing offers.
Bad Credit Mortgages – How to Get Home Loans With Bad Credit