You don't know what went wrong. As soon as you get your bill, you pay off your credit card debt. You always pay your rent on time. You've been giving your car dealer a check on time every time. So, why are brokers and lenders only willing to give women with bad credit home loans?
Getting a bad grade is one of the bad things that can happen to good people. It's possible that you don't deserve a bad rating at all. Your credit card company might have made a mistake and marked your payments as late. Many people have been in this situation before. Or, your car dealer might have thought you were someone else whose check had been returned.
What will happen next?
If you want to know about home loans for women with bad credit, you should ask around. Do you really deserve the low score? If you do, don't despair. Women with bad credit can still get home loans. If you don't, don't just sit there and take it. You shouldn't take out home loans for women with bad credit if you've been paying your bills on time and in the right way. Check your credit history and make any necessary changes.
Bad credit home loans for women
The easiest way for women with bad credit to get home loans is to borrow from a lender in the subprime market. Because subprime lenders are so eager to please borrowers, you have a lot of room to negotiate with them. The catch is that it's hard to find a reliable subprime lender. Most subprime businesses come and go quickly and take advantage of people. Also, the interest rates on subprime loans are higher. This is because you are a risk to the bank because you have bad credit. From the lender's point of view, the risk you pose will be worth the higher interest rates.
The Federal Housing Administration is another way for women with bad credit to get home loans. The government backs up an FHA loan. This makes lenders less likely to think twice about giving loans to high-risk women.
How to Get an FHA Loan.
To get an FHA loan, you must have a good credit history going back at least a year. With FHA loans, you can make as little of a down payment as possible. In fact, a non-profit group or another government agency might even pay for all or part of your down payment.
Getting rid of a bad credit score
If you don't deserve a bad credit score, you should get it changed. Here are some steps you should take if you want the mistake to be fixed:
- Figure out what went wrong, when, and where. Then you can get it fixed for free. You only need to send in your request for a change. You can use a separate sheet or a dispute form. Make sure to send it with supporting documents, like receipts or other proof of payment, to back it up.
- If your loan application was turned down because of the information your credit bureau gave, ask for the number of that bureau.
- Ask for a copy of your credit report for free. Do this within 60 days of finding out that the loan was turned down. Most people don't know that each year, they are entitled to at least one free report from each of the three major credit bureaus.
Women with bad credit can still get home loans. Even if you have a bad rating, you can still own a house. At this point, it doesn't matter that you have bad credit. What you do with it is what makes a difference.
