Types of Home Loans for People with Bad Credit
FHA home loan is a type of loan backed by the U.S. Federal Housing Administration and provided by an FHA-approved lender. Because the government guarantees these loans, lenders are often willing to lend them to people with poor credit. FHA loans aren’t just generally easier for people with bad credit to qualify for; they also have lower closing costs and a lower down payment requirement than conventional loans. As such, they’re one of the best loan options for people with bad credit. People with credit scores as low as 500 can typically qualify for a 10 percent down FHA loan.
VA home loans
VA home loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs. The U.S. government created these loans to help returning service members, veterans, and their spouses purchase homes. As such, these people don’t need high credit scores or down payments in order to be accepted. In addition, VA loans don’t have a mortgage insurance requirement, and they have flexible qualification terms and lower closing costs. They also only require a one-time funding fee, which can be financed. To apply for a VA loan, you’ll need to prove your service history by providing a valid Certificate of Eligibility.
USDA home loans
USDA loans are a type of mortgage loan offered to rural property owners by the United States Department of Agriculture. They’re designed to make it easier for low-income buyers to purchase homes in rural areas. Such loans are generally offered to people with a minimum credit score of 640. However, exceptions have been provided for people with lower credit scores. Streamline Mortgage is committed to helping prospective homeowners achieve their goals. If you have poor credit and you’re looking for a viable home loan option, consider applying for a FHA or VA home loan fromStreamline Mortgage. Primarily a hard money lender in Las Vegas and Reno, we are also an FHA- and VA-approved lender. As such, we can help you get favorable rates on your home loan regardless of your credit score. For more information, contact us today.