Low Credit Score Mortgage [mortgageprotectiontips.blogspot.com]
www.bestfreecreditscores.com Acceptable credit score for mortgages You see a home you are interested in and you want to know if you would be able to qualify for a mortgage loan. What is an acceptable credit score for mortgages you want to know. As with many things in life, it depends. You can get away with a low credit score if you have a large income with documentation and a large downpayment. Having a co-applicant with a high credit score would also help you get a mortgage. In certain cases you can have a credit score as low as 500 and still be approved for a mortgage. Of course you will have to pay a higher interest rate and need to provide more documentation but a mortgage is still possible. There are home lenders out there who still make sub-prime loans to people with low credit scores. You could also look into an FHA loan. They have lower lending requirements that allow you to come up with a lower down payment a nd a lower credit score. The interest rate is comparable to a conventional mortgage loan. The higher the credit score the better your odds of getting approved for a historically low mortgage loan rate. A 620-650 credit score is OK. A 650-700 credit score is better. Credit scores of 700 and up is best. If you have the income and the downpayment required, having a low credit score (500-600) is not enough to prevent you from getting a mortgage. If you have a little bit of time, such as 6 to 12 months, you can use that income to pay down your debts and make all ...
mortgageprotectiontips.blogspot.com Acceptable credit score for mortgages
If you want to get a low credit score mortgage, you have probably found it difficult to get financing. This is because your bad credit score affects your risk level to lenders. If you need to purchase a house, then it is important that you take certain steps in order to improve your credit rating.
The first way to improve your credit rating is to check you FICO score. By checking your credit rating, you can find out exactly how bad your credit is. You should also make sure that scan over the report and make sure there are no mistakes on your credit history. If you find anything that is incorrect, you should immediately contact a credit report agency.
Another step you can take in order to secure a low credit score mortgage is to save up for a down payment. If you can save between 5-10% of the home value as a down payment, the lenders are more likely to give you a loan.
Putting a larger down payment reduces the risk that lenders bear on the loans. You are also more likely to be approved for a lower interest loan as well.You should also see if you can find someone with good credit to cosign the loan. A cosigner is someone that agrees to cover the mortgage if you fail to miss payments or default. This gives the lenders more security when they give you a loan, because they take into consideration the cosigner's credit rating.
Before applying for a low credit score mortgage, make sure that you look around at different lenders available. It is important to see if you can get a better interest rate by looking online and seeing the different lenders available.
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