With a mortgage for people with bad credit, you can buy a house with little cash due at closing if you get 100% financing. Even if you have bad credit, you can start building wealth and home equity when you buy a new home. Look at your credit report to see if you can get one of these subprime mortgages. Boost your chances by adding to what you already know. And finally, look online for the best lender.
Look at the state of your credit.
If you have bad credit, you can't...
With a mortgage for people with bad credit, you can buy a house with little cash due at closing if you get 100% financing. Even if you have bad credit, you can start building wealth and home equity when you buy a new home. Look at your credit report to see if you can get one of these subprime mortgages. Boost your chances by adding to what you already know. And finally, look online for the best lender.
Look at the state of your credit.
You can't have mistakes on your credit report if you have bad credit. Before you apply for a home loan, look over a copy of your report and make sure everything is correct. There are many websites where you can get a free copy of your report.
Don't open or close any new accounts if you want to get a loan in the next few months. Your score will only go down for a short time if you do something like this. Instead, try to pay off your debt or spread it out over different accounts.
Plan on having cash on hand and a low amount of debt.
When deciding the status of a mortgage application, subprime lenders look at a number of things. Credit payments are important, but cash assets and income are also very important. These two things can make up for late payments or even a bankruptcy that happened not too long ago.
For a no-money-down mortgage, most lenders like to see at least six months' worth of cash on hand. A low ratio of debt to income is also important.
Look online for the right lender.
Subprime home loans have a wide range of interest rates and fees. Only by searching online can you find the best deal. The easiest place to start is with broker sites that have more than one quote.
Ask for loan estimates that include closing costs and fees for a "no money down" mortgage. This will show you how much a loan will really cost.
But the problem isn't so much that you can't get 100% financing; it's that you can't get a good rate. Be willing to use any kind of financing, even a down payment. No matter what your credit history is, lenders are more than willing to work with you.
