| If your credit is less than perfect, you may think that | | | | down payment, you'll need to borrow a whopping |
| home ownership is just a dream. But, actually, it's | | | | $140,000 from your lender! But if you have $50,000 as |
| possible to get a mortgage loan even if you have a | | | | a down payment, you'll only need to borrow $100,000. |
| low credit score. You'll have to make a few trade-offs, | | | | From a lender's point of view, that larger down |
| but you can get approved for a mortgage loan--even | | | | payment makes you a more attractive borrower, |
| with poor credit--if you: | | | | which means you're more likely to get approved for |
| Choose a "special" loan | | | | the mortgage loan. |
| Certain mortgage loans--like FHA loans or VA | | | | Get special help |
| loans--are specifically designed to help Americans | | | | Many states, localities and other organizations have |
| achieve the dream of home ownership. Because of | | | | programs designed for "special needs" borrowers. |
| this, they have lower down payment requirements and | | | | These programs can help you qualify for a mortgage |
| more lenient criteria for approval, so even those with a | | | | even if your credit isn't great or your down payment |
| shaky credit history can obtain one of these loans. | | | | isn't big. The programs vary: some are like grants, |
| You'll have to meet certain criteria--such as Veteran | | | | which tack extra money onto your down payment, |
| status or income restrictions--and you may have to | | | | whereas others are actual mortgage lenders. Search |
| pay a little extra on your interest and fees, too. Most | | | | the Internet to find mortgage assistance programs in |
| mortgage lenders will be able to help you find one of | | | | your area. |
| these loans. | | | | Try using one of ABC Loan Guide's |
| Save a bigger down payment | | | | Recommended Adverse Credit Mortgage Companies |
| In general, the more you borrow, the higher risk you | | | | Online. |
| are to the lender. So if you have poor credit, it's a | | | | Don't let a poor credit history stop your dream of |
| smart idea to save as much as possible for your | | | | owning your own home. There are plenty of options |
| down payment, even if this means waiting a few | | | | available for a mortgage loan if you're willing to do a |
| years to buy a home. If, for example, you want to buy | | | | little research. |
| a $150,000 home and you only have $10,000 as a | | | | |