If you have bad credit you may find it difficult to buy a home. By
being proactive and taking certain steps to repair your credit, you can find Texas home loans that will help make
your dreams come true.
Bad credit can make getting a car loan, credit card, and even a job
difficult. Although you may feel isolated, you are far from alone. According to
recent statistics released by FICO Inc., the average credit score is about 670
which is considered a “fair” score. In addition, nearly one quarter of all
credit using Americans have poor credit. So, although you may feel alone, there
are nearly 42 million Americans who are in the same boat as you. Bad credit can
also become a vicious cycle. You need to repair your credit by making on time
payments, not one will give you the opportunity to make on time payments so you
bad credit stays bad. You may begin to feel that the situation is hopeless.
If you have bad credit and are thinking about applying for Texas home loans, there are a few
steps you can take to help make sure that you will qualify. First, make all of
your rent payments on time. 12 months of on time rent payments can help when a
lender is trying to decide if you are worth the risk in terms of a mortgage
investment. In addition, start saving cash. Money talks, usually louder than
credit alone. Having 6 months to a year of living expenses in the bank
(including mortgage payments) will make it more likely that a lender will
finance your mortgage. In addition, save up for a down payment.
If your credit score is less than 650, you can still find Texas home loans that you can qualify
for. One of the main types of loans that can help sub-prime borrowers is an FHA
loan. An FHA loan is a loan that is secured by the federal government. You will
pay a fixed rate for principal and interest for a 15 to 30 year loan term. You
will also pay mortgage insurance in the amount of 80 to 200 dollars each month,
depending on the amount of your loan. You can qualify for an FHA loan with a
credit score as low as 500 as long as you have between 3.5 and 10 percent of
the loan value to put down.
Texas Tel: (512) 516-1177