100% financing of a bad credit mortgage can help you buy a house with
little cash due at closing. Even with an adverse credit score, you can
start building home equity and wealth with your new home purchase. To
get approved for such subprime mortgages, take a look at your credit
report. Stack the odds in your favor by increasing your qualifications. And
finally, search for the right lender online.
Take Stock Of Your Credit Situation
With poor credit, you cant afford to have mistakes in your credit
report. Before applying for a home loan, go over a copy of your report and
make sure all your information is accurate. You can get a free copy of
your report online through many sites.
If you plan to secure financing in the next few months, dont open or
close any additional accounts. Such activity will only lower your score
at least for a short time. Instead, focus on spreading your debt
across accounts or eliminating it.
Plan On Cash Reserves And Low Debt Ratio
Subprime lenders look at several factors when determining a mortgage
applications status. Credit payment is important, but so are cash assets
and income. These two factors can offset late payments or even a fairly
recent bankruptcy.
Most lenders prefer to see at least six months of cash reserves for a
no-money down mortgage. A low debt-to-income ratio is also critical.
Search For The Right Lender Online
There is a wide range of rates and fees charged for subprime home
loans. The only way to find the best deal is to search for it online. Broker
sites with multiple quotes are the easiest place to start.
Ask for loan estimates that include quotes on closing costs and fees
for a no money down mortgage. This will give you a realistic picture of
loan costs.
However, the problem isnt so much about getting approved for 100%
financing; its about getting a decent rate. Be open to all your financing
options, including a down payment. Lenders are more than willing to
work with your situation, regardless of your credit history.
Visit ABC Loan Guide for advice about
mortgage loans for people with bad credit.
View all of our Recommended Bad Credit Mortgage Lenders.
