First Time Homebuyer with Bad Credit

By Franklin Rhodes • March 10th, 2011
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If you are a first time homebuyer with bad credit, you may be interested to know what bad credit home loans are available to help you finance your home purchase despite your current credit situation. There are three specific kinds of bad credit loans for first time home buyers that you may qualify for. These are FHA loan, VA mortgage loans, and a subprime mortgage.  Typically new home buyers with low credit scores have difficulty qualifying for an equity loan because there” loan to value” is too high. There are some useful tips for 1st time home buyers that you may want to utilize as well. VA and FHA rates are typically 1 to 2 percentage points lower than subprime rates.

FHA loans are excellent bad credit loans with 1st time home buyer programs because they let you get into the home of your dreams with 3.5% down or less.  There are even specific down payment assistance programs that can help you as a first time homebuyer with bad credit to get into your home with no money down.  There are various kinds of housing units that first time home buyers move into, so you will need to understand which home loans for bad credit will be the most advantageous for your plans.

The VA mortgage program is designed for first time homebuyers who are veterans of the armed services.  More than 29 million veterans are eligible for VA financing, and you could be one of them.  Many times, VA mortgages will allow a first time homebuyer with bad credit to buy a home with no money down and then benefit from historically low interest rates on their loan.  If you are in active duty, in the reserves, or you are married to someone who is, this could be one of the best bad credit loans for first time home buyers.

Finally, there is a subprime mortgage option which is specifically for the 1st time home buyer with bad credit.  While you will be charged a higher interest rate than someone eligible to obtain a conventional home loan, at least you will be approved and get into the home you want.

As for tips for qualifying for first time home loans, you should try to reduce your monthly expenditures before you look for bad credit home loans because this will help you better afford your new mortgage payments.  Also, getting pre-approved for FHA loans, VA home loans, or your subprime mortgage will allow you to get ahead of the game when bidding on home purchase prices.  Hopefully, these tips for 1st time home buyers, along with knowledge about various loans for first time home buyers, will get you where you need to go. If you have any questions or concerns please contact out mortgage lenders who understand program parameters for a first time home buyer with bad credit.

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Comments

My wife and I have been renting a home for about 8 years and have been given the chance to buy. We tried to get a loan and found out our credit score is poor. I am a veteran and have never used my certificate to purchase a home. Any help in regards to pre-qualifying will be greatly appreciated.

I am a first time home buyer and I have been working very hard to fix the credit issues. I would like to tell you that the whole low score issue is from medical bills. The score has been as high as 690 recently. Please have a loan officer contact me in regards to how your pre-approval letters work.

Thanks!

By Purmilour Hunt on July 22nd, 2012 at 12:38 am

first time home buyer and a student in school plus low credit score can you really help me

I would like more information about your mortgage loan for people with bad credit. My fico score is low and I am shopping mortgages online.
– S.Green

im buying a house rent to owne but owner wants to get out now i dont want to loose it please call me at asap. I am considering a home mortgage for a property located in Pennsylvania and my credit score is 543, so I may need to look at bad credit mortgages. Please call me right away.
thank you.

I’m a single Mother and have been renting the house I’ve been living in for 21 years. My landlord will tell you that I’ve never been late on my rent, and at this point in my life, I really would like to buy a mobile, manufactured home. The one blemish on my credit report is not even correctly accurate. There are so many manufactured homes for sale in my area, I would really love to buy one, for myself and my children. And at this time in my life, I would definitely be able to afford one. Thank you, Kelly Garcia.

By holly roach on April 10th, 2013 at 8:27 pm

My credit score is very low and i want to buy a house plz help me i have tryied with banks and some other places and they all tell me no

By Angela Petit on May 3rd, 2013 at 6:14 am

Looking for a pre approval for a coop

I have poor credit and a disabled husband. I have tried to get loans but have been turned down from poor credit. The loan we need need is 60,000 but the home is worth 110,00. I NEED HELP

Im interested in a loan for bad credit My spouse and I are both on disability. My spouse is a Veteran . Together our combined income is very low. We have recently ( last week ) learned our credit scores are low also. We have all intentions of working on, and improving our credit. Renting is taking a toll on us as much as 80% of our income. Would appreciate any and all information you can suggest. We need help for years now. Please contact us Thank you for you time Dee

By Crystal mcCoon on May 31st, 2013 at 7:24 am

Me and my husband &3 kids plus his mom that we take care of would like to buy a home that will help out with his mom because she is In a wheelchair . We would like to buy a house because when you rent you can not put up a ramp or stuff she needs to help her out because you rent so if we can get a house we know we can help his mom out with a lot of stuff because it will be are home.Thank you God Bless.

low credit score looking to buy a condo with a rent to own I well have 18 months to purchase it I need to know if I can be pre approved and to see what it well take to get it

By karen ramirez on October 31st, 2013 at 7:44 pm

need to move out of mother-in-laws house because there are to many people living in one house. please help me

thanks

Please contact me regarding approvals for first time buyers with not so good credit contact me at the following number 570 878 7375

Thank you
Cindy

Please contact me regarding approvals for first time buyers with not so good credit contact me asap

Thank you
Cindy

WE PRAY that you can help us. Do you finance mobile homes for 1st time buyers? I have been with current employer for 16yrs & at same rental for 10yrs. That’s $180,000 we have given to our landlord & Landlord wants to increase rent $300-$400, WOW a mortgage is less. We’ve been saving & hv down pymt for a MH that we found & love & (tku Lord)accepts large dogs. Hwvr, I just recvd CR & shocked I’m currently working on it & have taken care of 2 items so far & researching. We are very near homeless (very). Now is the opportunity for us to purchase or we will be stuck renting & will be forced to put our beloved rescued pets to sleep. It is our fault for not staying on top of our CR but we are very stable people who pay our bills, vehicle, medical etc. We would NEVER let you down. Thank you for your time & consideration.

WE PRAY that can help us. Do you finance mobile homes for 1st time buyers? I’ve been with current employer 16yrs & at same rental for 10yrs. That’s $180,000 we have given to our landlord & they want to increase rent $300 WOW a mortgage is less. We hv down pymt for MH that we love & mainly (tku Lord)accepts large dogs. I just recvd CR & shocked currently working on it & hv taken care of 2 items & researching. We are near homeless. This is our opportunity we’ll be stuck renting & will be forced to put our beloved rescued pets to sleep. We are very stable people who pay our bills, vehicle, medical etc. We would NEVER let you down. Thank you for your time & consideration.

I have a good frend that’s wants to sale her house. she’s asking $30,000 but will let me have it for $20,000.I have been renting for years and really would like to own a home instead of renting. I only need a 10 year morgage loan,and I have no money for a down payment and will need help with that too.

By Nathaniel N. Santos on June 29th, 2014 at 5:03 am

I am very interested in more information about
How I can become a 1st time home buyer, never
Really developed credit , but was ruined before
I can develope some kind of credit, with your available programs, can help me develope and build my credit score. My # is 808-250-5078 if no answer, pls lve message…

ive lived in an apartment for 2 years and it is getting bad there with everyone blabbing on each other its pure hell there I have a 14 year old daughter and im divorced about 8 years now and I am tired of the apartment life I just want to buy a home myself and my daughter so we can have a place we can call home they keep raising the rent here I am on disability I get $733.00 a month and I pay all my bills and rent on time when they are in the office there I have all my rent receipts please give me a chance

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