How to Get an FHA Loan with Bad Credit
Getting a Federal House Administration loan is something that a lot of people need to do in order to purchase a house. However, credit card debt, car loans and other types of financial problems can prevent you from getting the loan that you want. So that is why it’s very important to know how you can get an FHA loan with bad credit with no problems at all.
Consider The Situation
Let’s say that you have very low credit scores, but your fiance has better ones. The two of you are planning to purchase a house together, and he has enough income to afford it by himself. You might want to consider letting him purchase the home and taking your name off of it. Once the two of you are married, your name can be added to the deed. This will help with your bad credit situation.
Other Financial Factors
When lenders look to see if are a good candidate for the loan, they are not going to look only at your credit scores. This applies to car loans and personal loans as well. They also want to see how much of a down payment you have saved up for the house. The more you have, the better the situation is going to be. The lenders will also want to see if you have high enough of a monthly income to make the payments.
Wait a While
Another option is to take your time and start to make payments to take care of your debt right now. Chances are, it is going to take awhile to go through the entire house-buying process anyway, so adding a little bit more time onto the process is not the worst thing in the world. During this time period, you can work on saving up more of a down payment and getting rid of some of that credit card debt that you have.
As you can see, it is possible to procure an FHA loan when you have bad credit scores. However, you need to:
- Think about whether another way exists to go about getting this loan.
- Realize that your credit scores are not the only financial factors that the lenders are going to consider.
- Think about waiting awhile before you go to get approved for the loan.
By taking these steps to success, you can be a proud owner within a decent amount of time.
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