Struggling with Bad Credit? Here are some ways you can still qualify for a Mortgage

November 8, 2017 Posted by kingcade

Having a poor credit score, does not necessarily mean a home is out of reach.  There are organizations and resources available to help homeowners get assistance with a down payment and find lenders willing to work with them.

Here are few options that are worth looking into:

FHA Loans.  These type loans, insured by the Federal Housing Administration (FHA) have flexible lending requirements and if you have a credit score of at least 580, you may qualify for a FHA loan requiring a down payment of no more than 3.5%.  Have a credit score between 500 and 579?  You can still get approved, but you will have to provide a down payment of at least 10 percent.

VA Loans. VA loans are reserved for eligible veterans and do not require a down payment or mortgage insurance. There is not a set minimum credit score for VA loans.  Lenders who offer these loans will have their own credit requirements.

Good Neighbor Next Door Program. The Good Neighbor Next Door program is offered by the Department of Housing and Urban Development (HUD) and is reserved for teachers, law enforcement officers, firefighters and emergency medical technicians.  This affordable housing program offers two big incentives: Eligible borrowers can qualify for 50 percent off the list price of the home if they commit to using the property as their sole residence for 36 months; and homes can be bought with as little as $100 down.

Filed bankruptcy or foreclosure?  If you have filed for bankruptcy or foreclosure, you can still own a home again and qualify for a mortgage.  Some borrowers may even qualify for an exemption.  For example, if the bankruptcy or foreclosure was due to a job loss or health problem, the lender may ask for an “extenuating circumstances letter.” This is an explanation of the events that led up to the bankruptcy or foreclosure, events that were beyond your immediate control.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.