Can I Buy a House With Bad Credit?
After foreclosure and/or bankruptcy, how could you survive? The bigger question- can I buy a house with bad credit? Do not freak out, a bad credit is just as bad as your attitude towards things. It is all about finding the right solutions. You are in a labyrinth of options. The good news is that you have some great options while there are also an equal number of bad options: the bad news. Can you buy a house with bad credit? Of course you can. You have to accept some realities and embrace opportunities. There is always a way around things. All you have to do is pay attention and establish a solid strategy to ensure top notch results.
Filing Bankruptcies has an interval of 7 years. If you understand your credit reports, you will know that any negative details can last that long, even more on bankruptcy. A good rule of thumb for those who would like to get a new home is to wait 4 years after filing for bankruptcy. In case of a foreclosure, the guideline is at 2 years according to FHA where you can qualify to get a down payment requirement of as low as 3.5%. If you are going to try the services of hard money lenders after bad credit, normally, you have to make a down payment of around 20 to 30 per cent of the house. Aside from that, you have to settle for very high interest rates. You can also get options from subprime lenders but they cannot finance the property 100%. Can I buy a home with bad credit? Yes, but the repercussions always tend to be pricey, as if I won the lottery.
You might want to improve your finances and credit rating before you get started with that. This will help you to get some better deals. So, how can you buy a house with bad credit? You might want to apply for a major credit card. This is easy since you already start again as a blank slate, and the lender already knows you do not owe anyone anything and you cannot file for bankruptcy within the next 7 years. If you take advantage of your situation, it is possible to generate some promising options on how to buy a house with bad credit.
Another strategy is to ensure that your employment status is solid. Stay in one job and hold your post for 2 years or more. Having stable salary is ideal since this is a major consideration from lenders. Self-employed individuals might have to make a different strategy. As we have already seen, most lenders will allow consumers to get a loan but they require that you pay a down payment. So, can you buy a house with bad credit? I can do so but I need at least 10% of the house price for down payment to be even considered. Finally, make sure you keep your current bills paid on time.
Can I buy a house with bad credit? Yes, you can. You just have to find the right lender and offer. Find out for yourself. Choose the loan type, then select your state and credit profile. Receive competitive rates from top lenders around the area.