Two Bedrooms - Loft Cabin Floor Plan

Two Bedrooms - Loft Cabin Floor Plan

How to buy a house with bad credit and no down payment ?

What's Going to Help You Get Approved?
To get 100% financing on your mortgage, that means that you have no down payment, which puts more emphasis on the other factors going toward your mortgage loan. For example, you will need to be stronger in the areas like income, employment, recent payment history, low debt-to-income ratios. If you can strengthen some of these factors you will have a better chance of getting approved. If you can find a home with a low loan-to-value rate, that may also help your chances of getting approved.

What's Going to Hurt You?
A super recent bankruptcy or foreclosure. Although it is not impossible to get financing under these circumstances, it makes it more likely that you will need some kind of a down payment.

Watch Out For Sub-prime Mortgage Scams - Borrowers with poor credit are often the target of inflated interest rates and excessive fees. With adverse credit history, you can expect to pay a slightly higher interest rate, but make sure you compare at least 2-3 other loan offers to be sure that your interest rate is competitive.

What About After Bankruptcy Mortgages?
You can expect to wait 2-3 years after the bankruptcy discharge date before mortgage lenders will be completely open to working with you. However, it's not impossible to get approved for a mortgage loan before that time, you just may need a small down payment.

Beware of the Pre-Payment Penalty - Mortgage lenders lending to people with bad credit usually tack on a pre-payment penalty to the borrowers mortgage loan. If you are OK with a pre-payment penalty, make sure it is for a reasonable length of time, maybe 6 mo. to a year. You don't want to lock yourself in to higher interest rates for very long.

Financing Your Mobile Homes

Trailer homes are the new trend today due to the market crash of 2008 and they are no longer called trailer homes. The new term for such mode of living is manufactured homes. These are housing for people who were affected by home foreclosures during the market crash and almost 19 million people are currently living on manufactured homes. This mode of living is considered much cheaper as there are no mortgages to pay and expenses to maintain this kind of living space is minimal. But for other people, trailer homes can also be used as rest and recreation vehicles as this could be brought to any places when having a vacation. But how could one avail such kind of living space if the financial capabilities are quite limited? Financial firms now have this loan package called mobile home loans.

Mobile home loans are like other loans that are usually availed when one wants to acquire a manufactured home. It is much like a car loan or a boat loan but it is specifically used to acquire trailer homes. There are two ways on how to use this loan. The first one is used to finance a manufactured home, just like a normal home loan or mortgage. This loan can be used to upgrade to a better trailer home or to finance the maintenance of a manufactured home. The other method is used when wants to acquire a manufactured home that can be used for recreational activities such as camping or vacation. A financial firm finances the purchase of the manufactured home and the buyer repays the amount borrowed.

Living in a manufactured home may look enticing for people who are living in a limited budget but it should be noted that this kind of loan may carry a high interest rate, much like a car loan due to the fact that the borrower may not be able to provide enough security to the lender for the loan that he or she is availing. The amount of this kind of loan may range from $23,000 to $94,000, depending on the purpose of the loan. The repayment period also ranges from 15 years to 25 years, depending also on the usage of the loan. Moreover, most lending firms would require a down payment ranging from 3.5% to 20% of the total loan amount. Lastly, most lending firms would require the borrower to have a good credit rating. If not, there are also lending firms who offer this loan to persons who have a bad credit rating in the past.

Given the current trends on the housing market today, more and more people are being enticed to live in manufactured homes due to their low maintenance and mobility factors. This can be possible as most financial firms are now offering this kind of home loans for people who want to have homes that are within their budget.

In retrospect, these are the following points one should remember about trailer home loans:

· Mobile home loans are loans designed for individuals who want to live in a trailer homes or manufactured homes. These loans are also designed for individuals who want to purchase a trailer home for recreational purposes.

· It may carry a high interest rate due to limited collateral that could be presented by a borrower.

· Different loan packages are available and the amount that could be borrowed ranges from $23,000 to $94,000 and can be repaid in 15 to 20 years.

· Financial firms who offer such loans would require a down payment and also a good credit rating although there are also lending firms that offer this loan to individuals who have bad credit ratings in the past.

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1 Bedroom Cabin Plan

1 Bedroom Cabin Plan

Why You Should Opt For FHA Loans

History of FHA

The Federal Housing Administration (FHA) was founded on 27th June, 1934. It was into oblivion for some time in 1990s but has become popular again since 2005 and is under the umbrella of The Department of Housing & Urban Development. It had strict guidelines for loan approvals and sellers didn't approve of them. But with the passage of time the FHA loans have become less stringent and have become quite poplar among a specific strata of society.

The working of FHA
To begin with, FHA doesn't guarantee your loans or gives you loans. It only insures the lender that if your loan goes into default. When someone lends you money as loan and you decide to put in less than 20% of the total loan value, FHA insures it and covers the risk the lender is facing by lending you money. Even if you don't get an approval from FHA the FHA approved lenders can accept your loan applications, process the application and underwrite and even finalize the loan.

Mortgage limits of FHA
One of the big advantages of FHA financing is that it has increased the maximum loan limits to keep. When I first started in the mortgage business, most homes in the Chicago area were priced under $100,000. Prices now, even after the down turn, are much higher. Since the cost keeps changing the FHA also keeps changing its mortgage limits. The FHA maximum mortgage changes based on the prices for housing in each area. In expensive areas, in 2009, it was 115 % of the average prices, subject to a maximum of $ 625,500. The loan limit is at $410,00 for a single family house in the Chicago area and the minimum nationwide is $270,000.

FHA loans for bad credit history
If you have had some problems with credit and you are looking at an FHA loan, you need not worry. You can get an FHA loan if we can show what happened with your credit and that it is not a current problem. FHA accepts FICO scores much lower than what is acceptable for a conventional mortgage. If you declared bankruptcy 2-3 years ago but have reestablished your credit, then you may be able to buy with an FHA loans. You may even be able to get an FHA loan within 2-3 years of your foreclosure.

FHA loans offer best rates and terms
The terms and conditions of FHA loans are simple to understand and calculate. FHA doesn't have the loan level price adjustments that are common with conventional loans, so the pricing is better for many borrowers. One of the great benefits of going with FHA is that you only need to have a 3.5% down payment, and all of this can come from a gift. FHA also allows the seller to pay the closing costs (it has to be negotiated into the contract when you buy) so you can often buy a home with out using any of your own money.

At one time, FHA was unpopular with Realtors and home sellers because their property standards were tough, and they required repairs before closing, often for little things. This isn't a real issue now, and though they still do require that the property meets their guidelines, the standards are much more practical and reasonable. They will require anything that is considered a health or safety issue to be fixed prior to closing, but in most cases conventional mortgages go with the same guidelines. There are no minimum income limit criteria for FHA loans. So if you are a first time buyer of a house are short of cash, this may be the best loan for you and a way to buy now.


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5 Tips For a Home Mortgage Loan Approval

Not everyone knows the most important things that he or she should keep in mind when applying for a mortgage loan. At times, they go to buy a home when they see that the interest rates and the prices of homes are coming down. However, it's important to know that the process of applying for a home loan is different from the process of renting an apartment or applying for a car loan. It's important that you educate yourself. Given below are 6 tips that may help you get approval for your home mortgage loan.

1. Review Your Credit Rating

Some people don't review their credit history prior to applying for a home loan. Actually, they assume that their credit rating is already high enough, which is not the case in some cases. A lower credit rating is a big hurdle when it comes to the approval of a mortgage application. So, it's important that you check your credit history and fix errors before the submission date.

2. Get Some Cash

Often, the requirements for a home mortgage loan change. If you are going to apply for a loan, make sure you have enough cash in your pocket. If you have no cash, your application will be rejected. You need to make a down payment. The minimum amount of down payment can be different based on a lot of factors like the type of lender and the type of loan.

3. Don't quit your job

It's important that you keep your job while you are going through the process. Actually, changes to your income status or job may have a negative impact on the home mortgage process.

Most lenders grant approval on the basis of the information given in the loan application. During the process, if you quit your existing job, the lender may have to evaluate your finances once again to ensure you still qualify.

4. Get rid of your debt

Having a balance on your credit card won't stop you from getting a mortgage loan, but it's better to have no debts to pay. Actually, your debts is a large factor that can help the lender find out if you should get a mortgage. The amount of loan you can get also depends upon this factor.

Generally, it's a good idea to avoid making big purchases unless your application has been approved. What this means is that you shouldn't use your credit card to finance a car or buy expensive home appliances.

5. Consider Your Budget

You should consider your budget when it comes to a mortgage loan. You shouldn't make this decision based on the dictation of your lender. Typically, lenders figure out the pre-approval amount on the basis of your credit report and income. They don't care about how much someone spends on fuel, groceries, insurance or daycare. So, it's better that you stay within your budget limits.


Article Source: http://EzineArticles.com/9954916