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Bad Credit Mortgage

Some people might think that just because their credit score is not so great that they can never buy a home. This is not so, because there is a loan called a bad credit mortgage that is specifically made just for people like this. Understanding about this type of mortgage will help you to know how it works and if it is the loan option for you. 

 

There are many government based or conventional mortgages that have been created for people with a low credit score and they are typically more lenient with credit history. You might be able to qualify for this type of loan, whether you are buying a home or going through some mortgage refinancing. If you wonder if you qualify for this type of mortgage, you should talk to a loan officer who will ask for some different types of documentation, including pay stubs, employment history, etc. He can use these documents to let you have a better idea of whether or not you will qualify for this type of loan. It is okay to get this type of loan for your first mortgage, second mortgage, mortgage refinance, or even a second refinance for your mortgage. 

 

Two commonly used loans that people will get if they have poor credit are FHA and VA loans, which both have fewer requirements for a super high credit score, making it easier for someone to qualify for them. Lenders like to use these because they are supported by the FHA for refinancing or first time buying. If you get this type of loan, you will notice that your down payment will probably be lower than another type of loan, which is good for someone with not so hot credit because they might not have a lot of cash hanging around. Something that is also great for people with poor credit is that the monthly payment will usually be low, which is a help to people with a small budget. 

 

Having poor credit does not have to be the end of the road for your dreams. People often dream of owning their dream home, and by using these types of loans, you will more than likely end up with a loan that has a payment you will be able to pay each month. The first thing you should do is go and talk to a loan officer to see if you will qualify, and then go ahead and go on dreaming! If you happen not to qualify, don’t be discouraged, but just work on getting your credit score increased so that you can try for a loan in six or twelve more months.