Owning a home is a dream that almost all of us have. Whether because you are tired of renting and landlords, or because you just want a place to call your own, buying a home is often the most meaningful purchase you can make. Bad credit should not stand in the way of your dream. Fill out our free short form to contact up to four lenders about your bad credit mortgage today.
Apply Here – Check out our short form – free quote request
If you have experienced bankruptcy or have bad credit, you may believe that
you will not be able to qualify for a mortgage. This is not necessarily true.
There are many loans available that make it easier than ever to qualify for
a mortgage. For example:
- Federal Housing Administration (FHA) insured mortgage
- Veterans Administration (VA) insured mortgage
- Adjustable rate mortgages
- Secured loans
Secured loans, or loans that use a home or automobile as collateral, can help those with bad credit qualify for a loan because, like the insurance provided with FHA loans, this type of loan reduces the amount of risk to the lender. The benefit of this reduced risk is passed on to you through lower interest rates.
Adjustable rates have more lenient qualifying criteria than fixed rate mortgages. Fixed rate mortgages have a constant interest rate that does not change throughout the life of the loan, ensuring that your monthly payments remain the same from start to finish. An adjustable rate does not have the same security, but relaxed qualifying standards and low introductory interest rates make this type of loan worth certain risks, especially if you are having a hard time qualifying for a fixed rate mortgage. If interest rate indexes drop over the years or if you plan on moving within five to seven years, an adjustable rate loan can save you money. There is a risk that interest rates will rise, but adjustable rate loans come with rate caps to minimize this risk.