| Having bad credit no longer prevents you from | | | | one lender and the remaining 20 percent from another, |
| borrowing. There is now an entire lending industry that | | | | meaning you will often have two mortgage payments |
| caters to borrowers with poor credit. In the mortgage | | | | to make each month. |
| sector these bad credit lenders are called "sub prime" | | | | Another option for homebuyers with poor credit is a |
| mortgage lenders. These lenders have a variety of | | | | cosigned mortgage. It is much easier to qualify when |
| loan programs including 100% financing, cosigned | | | | someone cosigns for your mortgage, and that person |
| mortgage loans, and government backed VA and | | | | does not have to live with you. If you have a relative |
| FHA loans to help you secure the financing you need. | | | | that will cosign your loan you can qualify for much |
| No money down programs have become increasingly | | | | better rates and terms on your mortgage. |
| popular. Have bad credit and no money for a down | | | | There are also government programs you could |
| payment? Think you're out of luck? Think again; there | | | | potentially qualify for. The VA offers mortgage |
| are many 100 percent mortgage options available for | | | | programs for Veterans and the FHA offers programs |
| homeowners with poor credit. The most popular of | | | | to help low-income homebuyers qualify. These |
| these is the 80/20 mortgage which allows you to | | | | agencies do not actually lend money, they simply |
| avoid paying Private Mortgage Insurance. An 80/20 | | | | guarantee the loan. To learn more about your |
| mortgage is actually two loans, often from two | | | | mortgage options including common mistakes to avoid, |
| separate lenders. The first 80 percent is financed with | | | | register for a free mortgage guidebook. |