Poor Credit Home Mortgage Loans - Getting Approved With No Down Payment
When applying for a new mortgage with poor credit, you may be wondering whether or not you can get approved with zero down .
There are a few factors that will influence this .
Consider these points:
1 .
Poor Credit Will Put More Weight on Your Employment History & Salary - When you are putting less money down and have credit problems, this will cause the lender to look more heavily at the stability of your employment history and income .
If your debt-to-income ratio is low and you have been at your job for more than one year, this will help you toward getting 100% financing.
2 .
Lenders Will Look Closely at Your Most Recent Payment History - Many people have had financial difficulties in your past, but one of the most telling things for a lender, is what your most recent payment history has been like .
If you have a bankruptcy that is more than a few years old, but over the last few years have made regular, on-time payments on all of your existing bills, you are more likely to get approved for 100% financing.
3 .
Consider Having the Home Seller Pay the Closing Costs - If, with poor credit, you are able to get 100% financing, it will probably be quite a stretch to have the lender also wrap the loan closing costs up in the mortgage loan as well .
When you make your offer on your new home, consider including in your offer that the seller pay all of the loan closing costs .
This is a common practice, and it is highly likely that the seller will agree.
Try pulling a copy of your own credit report to see how bad your credit really is .
Make sure you have disputed all inaccuracies on your credit report before you allow a mortgage lender to pull your credit .
If possible, pay down as many high balance revolving credit accounts as possible .
This can help increase your credit score significantly.
When applying for a new mortgage with poor credit, you may be wondering whether or not you can get approved with zero down .
There are a few factors that will influence this .
Consider these points:
1 .
Poor Credit Will Put More Weight on Your Employment History & Salary - When you are putting less money down and have credit problems, this will cause the lender to look more heavily at the stability of your employment history and income .
If your debt-to-income ratio is low and you have been at your job for more than one year, this will help you toward getting 100% financing.
2 .
Lenders Will Look Closely at Your Most Recent Payment History - Many people have had financial difficulties in your past, but one of the most telling things for a lender, is what your most recent payment history has been like .
If you have a bankruptcy that is more than a few years old, but over the last few years have made regular, on-time payments on all of your existing bills, you are more likely to get approved for 100% financing.
3 .
Consider Having the Home Seller Pay the Closing Costs - If, with poor credit, you are able to get 100% financing, it will probably be quite a stretch to have the lender also wrap the loan closing costs up in the mortgage loan as well .
When you make your offer on your new home, consider including in your offer that the seller pay all of the loan closing costs .
This is a common practice, and it is highly likely that the seller will agree.
Try pulling a copy of your own credit report to see how bad your credit really is .
Make sure you have disputed all inaccuracies on your credit report before you allow a mortgage lender to pull your credit .
If possible, pay down as many high balance revolving credit accounts as possible .
This can help increase your credit score significantly.
Poor Credit Home Mortgage Loans Getting Approved With No Down Payment
![Poor Credit Home Mortgage Loans Getting Approved With No Down Payment]()
Reviewed by Henda Yesti
on
June 25, 2018
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