Friday, May 26, 2017

You Could Be A Home Buyer With Bad Credit Northern CA Lenders Will Approve

By Richard King


You may have had some financial reverses in the past few years and think you will never be in a position to buy a house. You also know that your rent will continue to go up until moving to a cheaper and less desirable location becomes a necessity. There are ways to get around a bad situation however, and become a home buyer with bad credit Northern CA lenders can approve.

You might have to get creative if you want to be successful. That includes realizing you are not an ideal candidate for a traditional mortgage or conventional loan. That being the case, you should contact a credit union or one of the alternative loan companies that are available to see what kind of loans they can offer.

An adjustable rate mortgage probably isn't your first choice, but you might be able to get a lower initial interest rate as opposed to a fixed rate, which will be high due to your poor ratings. The thing to remember is that adjustable rates are just that. They can go up and down based on a market index.

Talking someone into co-signing with you on your loan could be difficult, but it is one way to get financing, if that person has an excellent rating. Since they will become as responsible as you are for repayment, you may have to make some special arrangements to make the idea palatable. If you don't pay your mortgage on time, it will hurt your cosigner's ratings and scores.

The federal government offers real estate loans for certain individuals who can't find financing. You should ask your Realtor about FHA loans. If you live, or want to live, in a rural area, the Department of Agriculture has money available for individuals who don't qualify for traditional financing. They will finance single family houses and multiple unit properties.

You may have to settle for an interest rate that is higher than the one you hoped for. You aren't necessarily locked into it for thirty years though. Making your payments on time and reducing your other financial obligations will improve your scores over time. Once your scores are at a certain level, you can contact your lender and try to negotiate a better loan at lower interest rates.

You will probably find that, without good scores and ratings, the properties you can purchase are limited to a certain price range. The amount of money anyone is willing to lend you may have limitations as well. Financial institutions don't necessarily care how you got into debt, they just want to make sure you can pay back the money you borrow on time and in full.

Hopefully you are someone who has an eye to the future who is saving money for a down payment and watching your ratings. This is the best way to become a homeowner. Even people with good credit sometimes have trouble getting the money they need to buy the house of their dreams.




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