Loans for Borrowers with Credit Issues

Not everyone can qualify for a home loan. However, if you had a bankruptcy, foreclosure or short sale, or you have other credit issues, you may be eligible for a home loan program. The minimum credit score still applies, but a singular credit issue will not prevent a borrower from getting a home loan. If you had a good credit history and life’s circumstances caused your credit to become damaged, it is possible to re-establish your credit as long as you did not have a pattern of delinquent payments. Any judgments or collections on your record must be fixed in order to get a home loan.

An FHA home loan is one of the best choices available for any homebuyer seeking a low down payment along with easier qualifying standards. There are many benefits with an FHA loan including a low fixed interest rate, lenient credit guidelines and low cash requirements.

The VA loan program provides veterans with the opportunity to purchase a home with very little out of pocket expenses.  With the VA loan, there is no required down payment, no mortgage insurance, and the qualification process is easier than a conventional loan. To qualify, you must have military service and provide a Certificate of Eligibility from the VA.

A USDA loan offers a 100% financing option. The requirements to qualify for a USDA home loan are much easier than conventional loan programs. A USDA loan is ideal for buyers who are looking for inexpensive properties located on the outskirts of major cities. USDA loans are for 30 years with a low fixed rate. Other than the VA loan, a USDA loan is the only option for 100% financing that is still being used in the housing market today.