If you are considering buying a new home and are concerned about your bad credit there are still options available for you as a first time home buyer. The recent cutbacks in sub prime lending has left many homeowners and potential homeowners wondering if mortgage financing will still be available when they need it.
Have your local broker check to see if you qualify for a MyCommunity loan.
If you have bad credit but still want to buy a house, you have options that can range from getting a co-signor to repairing your credit. You now have more choices than were formerly available to people with financial problems.
FHA loans are often the best bet when you are working on repairing your credit. There is no credit score minimum and typically 1 year of current credit will suffice.
There are government insured programs that help credit challenged borrowers. These programs place less emphasis on the credit score but do care about your credit history. Do no cancel those old credit cards just yet, wait until after you close on your home before doing that.
You can still buy a house with Bad Credit if you can come up with an acceptable downpayment or qualify for one of the many fannie mae,freddie mac or government programs.
While buying a home when you have bad or below average credit scores may not give you the lowest rates available, it can still be a better alternative than throwing your money away on rent. Here are a few tips to help lower your monthly mortgage payment.
* buy a less expensive home (instead of that 200k home, try to find one in the 150k range)
* consider an adjustable rate mortgage instead of a fixed rate mortgage until you get your credit scores back on track
* look into a 40 or 50 year mortgage versus a traditional 30 year mortgage
* consider the possibility of having a co-signor