How To Buy A House With Bad Credit History
If you have a less than perfect credit history and are wondering whether it means that you will never be able to own a house, there is some good news for you. It is indeed possible to buy a house even with bad credit history. Here are some tips that tell you how. The first step that you need to take towards buying a house if you have a bad credit history is to take a good look at your credit score. Remember that there are levels of bad credit. Just because your credit score is less than perfect it doesn't mean that you will be considered a serious credit risk. In general, if you have a FICO score that is between 600 and 640, you should get a 100% home loan financing. Even if you have a score between 500 and 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment. If your FICO score is less than 500, you may admittedly find it difficult to get a mortgage home loan. In such circumstances, you can offset the impact of bad credit and influence the credit decision in your favor if you score high on factors like current employment, income, expenses and assets. If all else fails, you may want to consider approaching a specialized bad credit loan programs available for people with bad credit, bankruptcies, late payments and other credit related problems. However, depending on how bad your credit history is, this may mean high interest rates or unreasonable terms. One option is to delay buying a house by a couple of months and to use the time to clean up your credit report. This way you can get a much better rate for your home loan from your mortgage company.
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