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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
By insuring home mortgages, the federal government has enabled lenders to relax their qualifications for certain low interest loans for low income families and for those with less than perfect credit. An FHA loan, insured through the Department of Housing and Urban Development (HUD), is an example of such an insured loan. These loans have low interest rates and very low down payments. The FHA stipulates that the monthly payment on the loan can not equal up to more than 29% of your monthly income and also has a limit on large these loans can be. A VA loan often requires no down payment and has very low interest rates. This loan is available only to those who have served in the United States military. For more information, refer to HUDs website (www.hud.gov) or to the VA (www.homeloans.va.gov).
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.
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.