If you have recently been through a bankruptcy or your credit is not quite up to par, you may be having concerns on whether you will still be able to buy your dream home. You may have to look a little harder for a loan and it may cost a little more, however there are loans called a bad credit loan mortgage. With this type of loan mortgage you can still purchase a home even if you have a bad credit rating. It is difficult to be in control of your credit history sometimes and their are many reasons that you could have a bad credit report. People have to face many issues including, job loss, medical bills and divorce and these problems can have a bad impact on your credit history.
If you are looking for a bad credit mortgage, you may have to leave behind conventional financing and attempt to get a VA, FHA or USDA loan instead. A USDA loan could be a good solution for a bad credit loan mortgage if you have next to no money to put down on the loan and if the home you want to purchase is in a rural area. This loan may cover 100% of the cost of the house, however it is not as common as it once was.
Another possibility is to get a fixed-rate loan through the USDA Rural Housing program and you may not have to carry private mortgage insurance, also know as PMI. If you are serving in the armed forces or are a veteran you may be able to get a VA loan. These loans are backed by the Veterans Administration, which will make it more likely to get a loan if you have a bad credit rating. The terms with these loans are generally less costly than the traditional mortgage, especially for those with a bad credit history.This loan can only be used if the borrower plans to live in the home and cannot be used for a mobile home or investment properties.
An FHA loan is backed by the Federal Housing Authority. Even if you have a bad credit history, you could be eligible for a FHA mortgage loan. The FHA has been assisting with bad credit loan mortgages for many years and their goal is to allow as many as possible to realize the financial and emotional rewards of owning a home. An FHA loan would also be good for those that may have good credit because the protection offered by the FHA will allow a lender to loan money to a borrower who has little money for a down payment on their dream home. If you have been faced with past credit problems, you need to realize that you are not completely alone and that there are still options out there for you. A bad credit loan mortgage can be had and it will help you own your dream home.