Are you thinking of buying a home? Are you sick of living with your parents or throwing away money each month on rent? Do you feel you won't get a mortgage because you have no down payment or a poor credit history? It may come as a surprise to you but you do have options available.
There are loan programs out there for people in your situation. For those of you with no money for a down payment, there are banks and lending institutions that will work with you. Some credit institutions will offer 100% financing.
This does come with strings attached. First you must qualify. The first thing a bank is going to wonder is why you have no money for a down payment and does this mean you are not a good risk. They will look at your credit history and may want to see a higher credit score than on a standard mortgage with a down payment. They will look at your employment history and income. If you have managed your finances well and have a steady job that you have been at for a fairly long period of time your chances are favorable. The credit institution will impose a higher rate of interest or want you to pay PMI insurance.
For those of you with a poor credit history, there are sub prime loans. These loans try to make it possible for people who would not ordinarily qualify for home financing to buy their homes. You need to qualify for sub prime loans and there are conditions. They will ask for a larger down payment and impose a higher rate of interest. Sub prime loans are good for the short term, but once you have been making payments for awhile and you begin to repair your credit rating, cheaper options may become available.
If you want to buy a home but have no money to put down, or have a poor credit history, don't give up. You may have more options than you think.
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Are you thinking of buying a home? Are you sick of living with your parents or throwing away money each month on rent? Do you feel you won't get a mortgage because you have no down payment or a poor credit history? It may come as a surprise to you but you do have options available. There are loan programs out there for people in your situation. For those of you with no money for a down payment, there are banks and lending institutions that will work with you. Some credit institutions will offer 100% financing. This does come with strings attached. First you must qualify. The first thing a bank is going to wonder is why you have no money for a down payment and does this mean you are not a good risk. They will look at your credit history and may want to see a higher credit score than on a standard mortgage with a down payment. They will look at your employment history and income. If you have managed your finances well and have a steady job that you have been at for a fairly long period of time your chances are favorable. The credit institution will impose a higher rate of interest or want you to pay PMI insurance. For those of you with a poor credit history, there are sub prime loans. These loans try to make it possible for people who would not ordinarily qualify for home financing to buy their homes. You need to qualify for sub prime loans and there are conditions. They will ask for a larger down payment and impose a higher rate of interest. Sub prime loans are good for the short term, but once you have been making payments for awhile and you begin to repair your credit rating, cheaper options may become available. If you want to buy a home but have no money to put down, or have a poor credit history, don't give up. You may have more options than you think.