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.





Comments
Post has no comments.
Post a Comment




Captcha Image






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



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

Finance Blogs
Finance