Poor Credit

Posted by admin on July 3rd, 2009 at 12:00am

Question:
Is owning a house possible for individuals with poor credit?
I have poor credit, but I also have a stable job and am planning to sign up for a debt consolidation program. I have not ever owned a house before. Is there any program for first-time house buyers who have poor credit? Does anybody have any suggestions?

Answers:
If your credit rating is bad and you are looking to buy a house, you could try to go for a poor credit home mortgage loan. Poor credit history includes a combination of late payments, bankruptcy or inability to pay bills. No matter how poor your credit history is, through a bad credit home mortgage loan, you may borrow money to finance your home easily. This assists you in buying a home, redecorate your house or even consolidate your loans. This sort of loan reduces your monthly payment due to lower interest charges as well as liabilities. As this particular loan gets tax relief, your tax liability also decreases.

Credit consolidation is not the answer I would recommend. Anything they do for you is something you can do for yourself. All you need to do is call your creditors and get them to reduce your interest so that you may issue timely payments for them. Credit consolidation will put it in your credit report so it may not help you with the mortgage. Have a look at your credit report, all three of them, and obtain your scores to see what it is that you will need to change. I could show you a few ways to fix it up.

Why is your credit bad? Did you file for bankruptcy? If it is due to too much debt, they may assist you if you have stable income and can show decent payback. There are companies that lend to people who are looked upon as a larger risk. You will need to come up with a payment up front, depending on your credit and amount of the loan, there is also a possibility that you could consolidate your debt into the house loan, and perhaps get a home equity loan in the future.

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