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 equity loans 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 for first time home buyers 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 bad credit home loans 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 home financing, and you could be one of them.  Many times, VA loans 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 first time homebuyer 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 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

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

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

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.

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