Americans believe this more than anyone else: there's no place like home. In fact, three out of every four Americans want to own their own homes. Also, the United States has gone through a very dramatic change. For the first time in American history, there are now more people who own their own homes than rent.
Why is everyone in the country so interested in homes? The answer is because it's easy. Lenders and brokers have made it so easy to buy a house that it's crazy. In fact, even people with bad credit can buy homes. This is possible with loans for people with bad credit and no money down!
Putting the credit reports together
When you want a loan with no money down and no credit check, you have to do certain things. First, combine your credit reports from Equifax, Experian, and TransUnion into a single report. If you don't want to hurt your credit score, it's best to take care of this task yourself. There are several places on the Internet where you can make the report.
That One Number
If your credit score is less than 575, you can do a few different things. You can try to get your credit back on track by getting some credit. Some credit cards and auto loans, for example, can help you get your credit back on track. Another step is to sign up with a credit repair company and have them get rid of some of the bad things on your credit report. Your credit score will go up as a result. Also, you'll need to show proof of two years of renting or a recent mortgage.
Taking a look at the credit report
Check your credit report again after you get a credit score of 575. You need a credit line with about a year's worth of history. Also, you shouldn't have more than two payments that are late by one month each. Also, each of your credit lines needs to have a high limit of at least $3,000. Lastly, your credit report will tell you that you need to open a credit line. At this time, it is very possible to get a loan with bad credit and no money down.
How to Get a Loan
When applying for loans with no money down and bad credit, keep these tips in mind. First, never apply to more than one lender at once. Your credit score will go down if you do this. Your credit score is affected by credit inquiries by 10%. If a lot of companies look at your credit report, your score could go down even more.
How to Stay Away from Scam Lenders
You should also remember that you need to work with an experienced and honest loan officer. If you have bad credit, some loan officers will use that against you to charge you higher interest rates or fees up front. So, it pays to look into things. Given your credit situation, you should know what a fair price is. With this kind of information, you can get bad credit no money down loans and avoid high fees and interest rates.
Good People, Bad Mistakes
Debt is one of the bad things that can happen to good people. So, tell the truth when writing a Letter of Explanation for Delinquent Credit. Lenders who do their homework will find out about your lie anyway. Tell the truth about your debts. Remember that it is natural for people to look out for themselves first. If you want a loan with no money down and no credit check, put yourself in the shoes of the lender. The only thing your lender cares about is whether or not he will get his money back. He won't care about your plans to buy a house, how another lender scammed you, or how your dog ate your credit report.
It's hard enough to get a home loan. Getting loans with bad credit and no money down is even tougher. Don't walk away from a challenge you know you can win. You can also get loans with no money down and bad credit. All you need is the right paperwork and a lot of patience.
