Bad credit first home loan
The biggest factor in qualifying for a first home loan is your credit score.However, if you are suffering from bad credit and looking for a first home loan dont get disappointed there are a number of lenders that offer bad credit first home loan programs . Here we will be discussing about the options that are available for borrowers with bad credit and how can you apply and qualify for these loans .
How to get started
To start with the process of getting a bad credit first home loan you should first get to know your credit situation . Get a free copy of your credit report from any of the credit bureaus and check it . If there are any errors found then Report it to the bureau so that it can be corrected .
Once you have this information then start getting quotes from different lenders that give out bad credit first home loan . However, you should not authorize any of the lenders at this point to access your credit report. The more the number of inquiries it can affect your credit in a wrong manner .
Consider down payment and budget
Most of the lenders ask for a down payment when giving first home loans unless you are applying for a 100% mortgage financing .It is important that you assess your budget and work on whether you can afford to take a new debt and would be able to make monthly payments .
Make sure that you have enough money to make a down payment of almost 5-10%. Keep in mind that more the amount of down payment the lower would be the interest rate charged . Since you have bad credit lenders would obviously charge you higher interest as compared to people with good credit.
When considering the cost of the bad credit first home loan you should take into consideration taxes, private mortgage insurance, closing costs and other expenses .
Sources of obtaining bad credit first home loan
When looking for a bad credit first home loan you can have different option.These include private lenders, government loans, banks, credit unions, sub prime lenders etc . The government provides first home loans to people with all types of credits with the help of the FHA and the HUD .
The rest of the options are similar to each other whether the lender considers your income, credit score, debt to income ratio, loan to value ratio etc. After the lender is satisfied that you would be able to pay back the loan in time then they approve you the first home loan .
Some of the lenders offering these loans are mentioned below:
American Residential Mortgage Services LLC:
Contact them at 280 N. Providence Road, Media, PA 19063 ; Phone: 610-565-4341, Toll-Free: 1-866-4ARMS33 (427-6733), Fax: 610-565-2002.
Home Loan Bank:
Contact them at Home Loan, One Home Loan Plaza, Warwick, RI 02886; phone: 1-800-223-1700 x299; Email: contactus@homeloanbank.com.
Countrywide Financial:
Contact them at 4500 Park Granada, Calabasas, California 91302, phone: 1-818-225-3000.
Other Articles
