 |
 |
Beating the Bad Credit Blues: Options in Home Mortgage Loans
by Karen Lawson
karen.lawson@californiamortgagerate.com
California Mortgage Rate Columnist
 E-mail Friend
 Printer Friendly
You want to buy your first home, but you're not sure that you'll qualify to get financing. You've had credit problems, so how can you get a home loan in today's competitive market? Don't give up. The mortgage lending industry has developed new loan options designed for homebuyers with little or damaged credit.
Innovative Mortgage Loan Options Can Help
Qualifying for a home mortgage loan can be challenging with bad credit, but lenders now offer a variety of methods to help you out. Expanded guidelines for loan approval allow lenders to consider a buyer's overall credit history rather than focusing on negative credit information. These loans feature terms requiring minimal down payments and lower initial interest rates and payments for the first few years of the loan term. Typical features of these home loans may include:
- Fixed interest rate for first five to seven years (borrower's choice)
- Terms of 15, 20, or 30 years
- Loan amounts up to 100% of a home's value
- Low down payment options$5000 down or 3% down derived from gifts, grants or employer assisted loan programs
If you prefer a fixed rate home loan, another option features a fixed interest rate with a rate reduction after 24 consecutive, on-time payments. Lenders offering this option often assist borrowers in making timely payments by providing automatic payment transfers from checking or savings accounts.
An Added Bonus
These loan options can assist you in buying (and keeping) your first home. You can buy a home with minimal cash out of pocket and enjoy flexible terms help maintain your budget. Finally, making your mortgage payments on time every month helps rebuild your credit. As with all major financial decisions, it's best to research financing options to determine what works best for you.
Source:
Fannie Mae Website
About the Author
Karen Lawson has more than fifteen years of experience in the mortgage lending industry. She earned an MA degree in English from the University of Nevada, Reno.
|
 |
|
|
|
|
