A bad credit score can lead to some unfavorable terms on your mortgage loan but cannot totally deprive you of it. While you certainly have to endure some high-interest payments, there are several loan options to cater to your home buying needs. Here are some tips to help you get a bad credit mortgage loan:
Alliance Member Bad Credit Mortgage Loans
Find an Alliance member that specializes in Bad credit mortgages. There are alliance lenders that are willing to lend you a mortgage loan despite your poor credit score. Unsurprisingly, though, the terms and rates are not much higher than a loan with perfect credit. Please reach out to an Alliance member to go over your lending profile. Heck, they will either make you a great loan offer or get you moving down the path to new homeownership!
Mortgage brokers often develop a wide network in the industry over time. If your Alliance member can’t help you with your bad credit, request for a referral. The Alliance Member will most certainly be aware of a bad credit mortgage lender in the market.
Wait and Save
If you’ve just completed a short sale, start maintaining good credit. This will allow you to qualify for an FHA loan in three years and even better loans in four years. However, keeping your credit clean is the key here. While waiting, you can cut down on your costs so as to save to pay for a down payment later.
If you can put at least 20% in a down payment, you will have a significantly higher chance of getting a mortgage, you will be required to pay less money in interest payments, and also get away with the requirement of private mortgage insurance premium.
Request free mortgage information from an Alliance member by clicking here.