Most people are aware of the role of credit
There are very few people that are unaware of the critical role your credit score play when trying to buy a home. How do I know this? Well I’ve been in the mortgage business for a while and I have never had anyone come into our offices and not be somewhat concerned about their credit. While credit is factor, your ability to buy or refinance depends on several other factors too. What I am saying is that if you want to buy a home and you have low or bad credit or were even turned down for a mortgage at some point – stop worrying, there are other options.
It’s exploration time
This will sound silly coming from me but there are other places to turn to if your credit is not adequate enough to get a conventional loan. The question is are you willing to take the time to discover what lenders want to see in your credit score? You may be surprised that even with low credit, you may be able to get that house funded. Just understand it’s going to take work, persistence, diligence and a lot of other traits that end in “ence”.
Granted that lender criteria has become more stringent lately (Subprime lending flashback anyone?), the truth is that consideration is still available if you have a FICO score of 650. In most cases you can get a loan. It might not come with the best interest rate but hey – its a start and better than no house – right?
What do conventional lenders expect?
Get outside the lines and do the unexpected to get what you want
Majority of people look for a loan or mortgage in order to buy a home. And because it is so common and literally has been woven into the behavior of society, most people think it is the only way. It is not the only way. There are other ways! Remember when I said that approval can rely on a number of factors and not just credit? Well, believe it or not lenders look at other factors as well. Here’s an important one – the size of your down payment.
Some lenders are willing to assign nominal value to your credit score if you are willing to share the risk of lending by putting a significant amount down towards the home.
If you’ve got a good amount of money in savings but your credit score may be a challenge, then consider making your self a more attractive candidate for a loan by increasing the size of your down payment. It may work.
Have you heard of Non-Conventional Loans?
Have you ever heard the terms FHA, VA or USDA? These stand for Federal Housing Aministration, Veteran Affairs and U.S. Department of Education respectfully and these guys all offer non-conventional loans. These loan types usually less stringent lending criteria. For example, it is possible to qualify for a loan with a credit score of 580 with FHA. However it requires 3.5% down. Consider taking some time to look into these options and if you do not have the time, I know a friendly neighborhood mortgage company that does.
Go where the money lives
You know what happens when you go where money is physically present? You are now in the presence of money and you might get some. If you have been serially turned down for mortgage loans, consider talking to every banking and lending institution in your local vicinity about your options. Several banks at times, offer lending programs for people that are considered low-income or have low credit and in some cases would waive credit restrictions if you meet their criteria.
Defeat Bad Credit – So you can have an easier time getting a loan
Do you have horrendous credit? Are you the James Bond of credit? That means your credit score is 007.
If this is true then get excited because when you are so far down, the only way you can go is up. (By the way it is just as easy to be the James Bond of Credit as it is to be James Bond himself.)
Believe it or not you can raise your score. It takes time and a lot of discipline, but if you want that home and you don’t want to pony up hundred of thousands of dollars to get it yourself, then you’ll have to do this the slow way.
Start by connecting with a reputable credit restoration company. They can help you with different ways to legitimately improve your credit score. So do not give up so easily, Talk to some professionals, do some research and just keep at it because persistence overcomes resistance.