If you are attempting to obtain a mortgage with bad credit do not despair. It is possible to improve your credit over time and to qualify for a new mortgage loan.
Boosting credit scores is not the only means for people with deficient credit to get a home loan. The Federal Housing Administration (FHA) has made it easier to quality for a mortgage for people with bad credit. Under certain circumstances, people who have foreclosed or declared bankruptcy can obtain an FHA loan several years earlier than a conventional loan, and these people can buy a home with a smaller down payment.
Here are a few ways to help obtain financing for a new mortgage loan with bad credit:
Improve payment history by making payments on time
- Build up savings
- Show evidence of steady employment for a period of one to two years
Do not open new lines of credit Use credit cards sparingly, and without overextending credit lines
Make payments in full
Have up to four different kinds of credit accounts
Come up with a budget plan and stick to it