A home is one of the most expensive things that someone will buy in their lifetime, but of course no one has thousands of dollars floating around to give in bulk. That’s why banks and loan companies lend out money to people who want pay for their home mortgages, with loans. Although there are some big obstacles, being a first time buyer and not knowing what the heck you’re doing, and having bad credit.
What is Bad Credit? Here is a range of good credit to bad credit, to see what you need to prepare for when searching for a home loan. If your credit score is low, chances are that finding a home loan will be much more challenging. A low credit score ranges from 500 to 619.
Need a mortgage calculator to see where you’re at? http://www.mortgagecalculator.org/helpful-advice/bad-credit-mortgage-loans.php
A subprime mortgage is lent to people interested to buy a home, but with low credit. Why people with low credit aren’t offered normal mortgages is because the lender sees that person as a high risk and does not want to take their chances. What lenders do with subprime mortgages is that they increase the interest rate to compensate for the high risk they’re allowing to take.
Opp Loans, Oploans.com
Some Success Stories
“I started reducing the extra expenses. Don’t need em, I’d rather have the money now that I know how much I could be saving. Have you ever totaled up how much you are spending on fast food, cigarettes, or Starbucks? I betcha it’ll be an eye-opener too! I actually started making a game out of how much money I could save and how much I could reduce expenses. I started doing $0 days, where in 2009-2010 I didn’t spend ANY money on 201 out of 365 days. I did another year experiment where I kept track of how much money I saved through coupons and discounts, and realized I saved over $2,300 JUST by taking a few moments to be a conscious shopper. This was a very popular blogging series that I may just pick up again here soon on my personal blog.” -Moneydrain.net
“He rented out his house and moved in with his brother. He sold his car and bought a cheaper set of wheels. “I just went backwards. My goal was to lower my monthly expenses as low as I could possibly go without like feeling any sort of discomfort." He managed to cut his monthly expenses from $4,500 to $1,500. Once he began making payments on time and reducing his debt, he asked his credit card companies for higher limits. That helped lower his debt-to-credit ratio; the lower your ratio, the better it is for your score.” -Chase.com
Places that give home loans to people with bad credit:
Lending Tree, Lendingtree.com
Lend Up, Lendup.com