Every month that you pay rent is a month that you are virtually wasting money. Obviously you need somewhere to live but instead of paying someone else’s bills why don’t you pay your own and buy a home. Bad Credit is the biggest thing that stops people from buying homes. Many people believe that they can never buy a home because of bad credit and they simply give up and continue to pay rent. Well the good news is there are programs out there for people who have bad credit.

The FHA loan was created for lower income houses and people with bad credit. The down payment for these loans is only 3.5% of the total lending price. This is the first thing that attracts people to FHA loans.

It’s a huge difference compared to the 10% down payment on a conventional loan. You must have at least 12 months of perfect payment history on your credit score to qualify, as well as your debt to income ratio to be low. Lastly you must use the property for your permanent residence. Using the property for any type of rental is against regulations.

The VA loan is designed for military personnel. To qualify for a VA loan you must either be retired or enlisted in the military. The VA loan has significantly lower rates, and the household residual income is very low and easily achievable. The minimum credit requirements are not even strictly enforced. The only strict rule like the FHA loan is that you must be free from delinquencies on your credit for at least 12 months.

If you are tired of renting and are ready to be in your very own home now is the time to do it. Rates and home prices are historically low. There are many opportunities for you and your family to move into the home of dreams. So don’t procrastinate, and begin taking your steps towards a home.

Learn more about bad credit mortgages and about mortgages for bad credit

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