How to Secure a Home Loan If You Have Bad Credit 

How to Secure a Home Loan If You Have Bad Credit 

October 12, 2022 Off By takiayabalmone

Becoming a homeowner is definitely one of the many dreams of most people today. However, with the continuous increase of housing prices, borrowers were left with no choice but to acquire a home through financing. There are many types of home loans that cater to the varying needs of each borrower. Although there are numerous lenders who offer different home loans, not all borrowers areable to qualify for a mortgage because of the down payment requirement that they have to meet as a deposit for the loan.

It is a good thing that there are some lenders that offer home loans that require little to zero down payments in the market. In addition, the best thing with these loans is that even borrowers with not so stellar credit rating can qualify for them. This can also be an advantage for people who have liquid assets invested in the stock market, CFD trading, or mutual funds. As a potential homeowner, you do not have to wait for years to save for down payments to acquire your loan and become a homeowner. All you have to do is to learn the ways on how to apply for this kind of financing option. 

Qualify for a VA Home Loan: Veterans Affairs or VA home loan is offered to both the active and retired members of the military and coast guard who served for at least 90 days of service during the wartime and at least 181 days of continuous serviceduring the peacetime. Aside from the veterans, their spouses are also eligible to apply for a VA home loan, provided that they are qualified with the specific requirements for eligibility. VA loans are offered by lenders to war veterans for them to acquire their own homes that will be used for their occupancy and not as a second home.

Even if you have a bad credit due to bankruptcy, you can still qualify for a VA home loan as long as you provide an explanation of your previous bankruptcy, you have re-established your credit worthiness, you have a stablejob, you have a good payment history. However, you cannot be eligible for aVA loan if you have been proven as a credit risk by your previous lenders due toyour continuous default in paying your mortgages. 

Apply For an FHA Loan:The Federal Housing Administration or FHA loan was designed toexpand the home ownership in your country and to help low-to-middle incomeborrowers acquire their new homes without spending too much on their downpayments. Aside from no to low down payments, a FHA loan program alsoprovides borrowers with mortgages with low interest rate and affordable closingcosts. This means that you can use your existing finances for other types of investments such as, sayCFD trading, stock market, or investing in a reputable insurance provider. As with any other forms of financing, the lender will also check if you have a desirable payment history andhave rebuilt your credit worthiness.