Bad Credit Mortgage
For those who have less than perfect credit, they may have heard about programs called bad credit mortgage. While it is true that there is such a thing as a bad credit mortgage, some extra explanation needs to be given in order to help one understand exactly what a bad credit mortgage is and how it works. Let’s go over how a bad credit mortgage works, and how one qualifies for one.
Understand How Bad Credit Mortgage Works
The first thing to understand is that when one talks about a bad credit mortgage, they are talking about a conventional or government backed mortgage that caters to those that have less than perfect credit. The mortgage loan programs usually have more elastic guidelines when it comes to credit score and credit history. A bad credit mortgage can also be utilized when looking for mortgage refinancing as a mortgage refinance can utilize conventional and government loan programs.
One of the most popular mortgage used for bad credit individuals is that of FHA and VA loans. These loans have lower credit score requirements as they are backed by the Federal Housing Administration. This backing of the mortgages also means that the loans require a lesser amount when it comes to a down payment.
Bad Credit Mortgage and Down Payment
Those with less than perfect credit often don’t have a lot of money to put down on a mortgage, so that is why these types of mortgages cater to these types of borrowers. They also have low rates which is great for those that are payment conscious. This can help to ensure that borrowers have a low monthly payment that will work better with their limited budgets.
In order to qualify for one of these mortgages, simply contact a loan officer. These loan officers will collect information from you which will include income, credit, and job history. With this information, you will be able to find out if you quality for one of these types of loan programs. These programs can be used for purchases, mortgage refinancing, or a 2nd mortgage refinance.
If you have less than perfect credit, it is a good idea to make sure to check out this type of program as it can keep your payment low, and may even be able to get you into a house when it would otherwise be impossible.
