The different home lenders facilitating people poor credit |
Posted: August 10, 2018 |
A house is a necessity that many people need particularly family with kids and newly married couples. Many people are not wealthy and struggle with financial constraints so could not afford to pay huge sums of money required to buy a house, these people look to apply for home loan programs according to their financial ability. The home loans are provided mostly by banks, private lending companies, and government approved lenders. But there are certain criteria which the borrower must satisfy to qualify for the loans. A credit score is the most crucial aspect as it tells the true financial ability of the borrower. A person with a score of 500 to 570 is considered as poor credit, and many lenders consider it risky giving a loan to a person who already has outstanding debt. Home lenders for poor credit mostly include government-approved lenders who give equal opportunity to potential homebuyers to own a home even with a poor credit score. The people with poor credit have a chance to acquire numerous government insured loan programs such as FHA (Federal Housing Administration) loans, VA (Veteran Affairs) loans, and USDA (United States Department of Agriculture) loans. The FHA loans are the best option that home lenders for poor credit provide as they allow people with poor credit to make only 3.5% down payment which quite low compared to 20% of conventional loans. The VA loans, on the other hand, allow war veterans to buy and own a home without any down payment or credit score requirement. The USDA loans make it possible for a person to purchase a house in a rural area without any down payment. The interest rates of all government-backed loans are also quite low.
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