How to Get a Bad Credit No
Money Down Mortgage
People who have had credit problems often
live under the assumption that their poor credit history
will prevent them from being able to get a mortgage.
This is not the case at all, and more and more people
are turning to a bad credit no money down mortgage to
realize their dreams of home ownership. You must find
a lender who specializes in unusual circumstances. These
lenders will help you get a bad credit no money down
mortgage. You usually will have two programs to choose
from with these lenders.
The first is a standard bad credit no money down mortgage.
These programs will lend you the entire amount of the
home you are considering for purchase. These are generally
for borrowers on the better end of bad credit. The one
downside to these loans is that they generally have
a very high interest rate compared to a traditional
mortgage. However, if your credit standing improves
with time, you can refinance your bad credit no money
down mortgage at a lower interest rate in the future.
Other the two programs, this is the most cost effective,
if you can qualify.
The other option for a bad credit no money down mortgage
is an 80/20 loan. Technically, these are piggy backed
loans where one account is a loan for the down payment,
and the other is for the balance of the mortgage. These
are a better option for those with the worst credit.
While again, your interest rates and payments may be
a bit higher initially, you can consolidate later on
to save money, as your credit improves. Your best bet
is to consult a bank or mortgage broker about which
option will work for you, as they can give you the best
advice possible to be able to pay back your loan.