You may have had some financial reverses in the past few years and think you will never be in a position to buy a house. You also know that your rent will continue to go up until moving to a cheaper and less desirable location becomes a necessity. There are ways to get around a bad situation however, and become a home buyer with bad credit Northern CA lenders can approve.
Making a realistic assessment of your situation is a good first step. Getting a thirty year fixed rate mortgage at a low interest rate is probably not possible for you at the moment. Even if you can a good cash down payment, conventional lenders still won't risk giving you money for an extended period of time. You should at least look at alternative lenders and credit unions to see what financing packages they have.
You may want a fixed rate mortgage, but the chances are that the interest rate a lender is able to offer will be substantially higher than for someone who has high scores. If you consider an adjustable rate mortgage, you can probably get a decent initial rate. You do have to remember though that your rate can go up from year to year as well as down.
Getting a cosigner is another possibility for some. If you have a parent or sibling who doesn't mind putting their own rating on the line, you could get financing with their signature added to your loan documents. This is a big risk for that person however. If you don't make your payments on time, their ability to borrow money will suffer.
You should certainly consider a government loan if you have this problem. People who live in rural areas can qualify to financing through the Department of Agriculture. They have money for single family homes and multiple unit housing. The FHA also backs loans. Your Realtor will be familiar with these options and can explain them to you.
When you end up with a loan that has a high interest rate or have to get an adjustable rate mortgage that can go up, it isn't the end of the world. Making your payments on time, or making more than one payment a month, if possible, will improve your rating over the course of a few years. You can also pay off other debt during this time. After about five years, you should apply to refinance your original loan with more attractive terms.
Getting into financial difficulty is sometimes unavoidable, people have illnesses and job losses that turn their lives upside down. Many individuals are just careless though or live above their means. It is possible to borrow money, but you will probably have to pay more interest, and you may be limited in what houses you have available to you.
In a perfect world, you wouldn't get in over your head for any reason, but no one lives in a perfect world. You can improve your financial situation by purchasing a house. It may be a matter of settling for something less than ideal initially.
Making a realistic assessment of your situation is a good first step. Getting a thirty year fixed rate mortgage at a low interest rate is probably not possible for you at the moment. Even if you can a good cash down payment, conventional lenders still won't risk giving you money for an extended period of time. You should at least look at alternative lenders and credit unions to see what financing packages they have.
You may want a fixed rate mortgage, but the chances are that the interest rate a lender is able to offer will be substantially higher than for someone who has high scores. If you consider an adjustable rate mortgage, you can probably get a decent initial rate. You do have to remember though that your rate can go up from year to year as well as down.
Getting a cosigner is another possibility for some. If you have a parent or sibling who doesn't mind putting their own rating on the line, you could get financing with their signature added to your loan documents. This is a big risk for that person however. If you don't make your payments on time, their ability to borrow money will suffer.
You should certainly consider a government loan if you have this problem. People who live in rural areas can qualify to financing through the Department of Agriculture. They have money for single family homes and multiple unit housing. The FHA also backs loans. Your Realtor will be familiar with these options and can explain them to you.
When you end up with a loan that has a high interest rate or have to get an adjustable rate mortgage that can go up, it isn't the end of the world. Making your payments on time, or making more than one payment a month, if possible, will improve your rating over the course of a few years. You can also pay off other debt during this time. After about five years, you should apply to refinance your original loan with more attractive terms.
Getting into financial difficulty is sometimes unavoidable, people have illnesses and job losses that turn their lives upside down. Many individuals are just careless though or live above their means. It is possible to borrow money, but you will probably have to pay more interest, and you may be limited in what houses you have available to you.
In a perfect world, you wouldn't get in over your head for any reason, but no one lives in a perfect world. You can improve your financial situation by purchasing a house. It may be a matter of settling for something less than ideal initially.
About the Author:
If you are looking for the facts about a home buyer with bad credit Northern CA residents should come to our web pages online today. More details are available at http://jdpropertyventures.net now.
No comments:
Post a Comment