Home Loans For Bad Credit – How?

By Author: Roderick Benton
Total Articles: 3
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The fact is that there are limitations, but here is the scoop on bad credit home loans, and a plan.
The first thing to consider is how you got bad credit to begin with. If you filed bankruptcy, or went through a short sale, or foreclosure, then there are periods of time where you have to wait before you are eligible for a home loan. FHA allows for a return to home ownership three years after a foreclosure has been discharged, three years for a short sale that had late payments associated, two years from the discharge of a Chapter 7 bankruptcy, and one year from the discharge of a Chapter 13 bankruptcy. For those that do not have these items on their credit report, the reality is that home ownership is likely within reach. For those that have any of the previous hiccups on their report, simply circle the date and return to the process 6 months before the wait period is over and follow the plan.

Get your credit report and credit scores.
This is far easier now because it is available instantly online. Historically, this took weeks to arrive in the mail, and many people had shifted focus, decided to ...
... wait on looking for a loan. With your report in hand, you now have the facts, take a moment to understand the report and see how you got bad credit. Late payments, unpaid items, and items in collections or judgements are the biggest reasons for poor credit scores.

What are the Options?

FHA Loans offer the best opportunity to succeed currently with a bad credit home loan. Items in collections totaling over $1,000, or judgements will halt the loan process until progress is made. Progress is defined as either paying these off and having them removed from the credit report, or setting up a payment plan with the creditor, showing three months of on time payments. Not the end of the world, if you have these, you just set a plan in motion - you are at most three months from ready to go. If there are no items in collections, no judgements, no recent bankruptcies, or recent foreclosure, the borrower is likely ready to jump in and get things in motion.

The Plan

With your credit report in hand, tell us your goals, and give our loan specialist the needed information so we can help you attain your home loan. Lay out a strategy, and get a loan that is competitive and responsible. GovHomeLoans.org is helping people every day, we can help you too.

For more information Home Loans For Bad Credit please visit http://govhomeloans.org/