Tips for Applying for a Home Loan with Bad Credit
Apply for a loan for people with bad credits
There are several different types of loans designed specifically for people who have less-than-perfect credit scores. By applying for one of these home loans, you can improve your acceptance chances. Two of the most common types of home loans for people with bad credit include FHA loans and VA loans. Because FHA and VA home loans are both guaranteed by the U.S. government, lenders are typically more willing to lend them to people who have poor credit scores.
Pay off debts if possible
If you can pay off any debts before applying for a home loan, doing so could increase your approval chances. Credit lenders typically view people with few or no debts as less risky when it comes to their ability to pay off their loan in a timely manner. As such, they may be more likely to approve a loan for someone who has zero debt even if their credit score is lower than they would typically desire. If you are struggling to qualify for a home loan due to your bad credit, Streamline Mortgage can help. We are private and hard money lenders in Reno and Las Vegas that offer a wide range of loan options, such as VA and FHA home loan options to help give you the best chance of getting approved. To get one step closer to your dream of owning a home, apply online today.