Who Does Home Loans with Bad Credit?

Big financial institutions can stir the stigma that people with bad credit can’t get reasonable home loans anymore. This notion is getting debunked for there are rising companies that specifically cater to persons with bad credit. An example of such a company is Credit Repair Now, which focuses its services on helping its clients obtain mortgages.

Credit Repair Now connects its clients to institutions that can grant them loans despite their credit history. Here are some agencies that may be tapped for bad credit mortgages.

Government-sponsored Loans

These are commonly known as the Federal Housing Administration (FHA) loans or Department of Veterans Affairs (VA) loans. Other entities include a variety of lesser-known programs such as the USDA housing program. Their assessments are based upon your area, housing needs, and income.

Independent Lenders backed by the FHA

Loans insured by the FHA protects lenders from the risks of catering to subprime borrowers. These lenders can set their own requirements since they are independent entities. They can also reduce payments aside from offering looser credit requirements.

VA-insured Home Loans

Active or retired members of the US military are qualified to apply for a specific home loan for veterans. For this type of loan, the lenders are insured by the Department of Veterans Affairs. VA home loan borrowers may buy a new home without down payment. But of course, there are terms and conditions that apply.

Home Equity Loans

A home-equity installment loan or a second mortgage is a type of consumer debt. Loan amount approval here is based upon the home’s current market value and the homeowner’s mortgage balance due. Minimum score and requirements vary by lender.

Home Improvement Loans

The FHA 203(k) loan and the Fannie Mae HomeStyle loan are home improvement loans specifically for subprime consumers. The latter is generally more lenient. Take note that improvement coverage of loans varies by type.

Loans for Manufactured and Mobile Homes

This section is for home buyers of literally mobile abodes. Majority of mobile home sales comes from low-income demographic. The best option for this type of financing is the FCA-backed loan. Standard FHA terms and conditions apply.

If you have noticed, the majority of bad credit refinance loans are supported by the government. And the most important part is, buying a home with poor credit is no longer impossible. Thanks to Credit Repair Now, the company is just a call away to open the doors for you.

Have you made up your mind on which type of loan would you go for? Get in touch with Credit Repair Now and make that home loan happen.

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