If you are one the rare few that can’t qualify for FHA, don’t work worth a credit repair company. Ask your approved FHA lender about steps you can take to get approved in the future. As an approved FHA lender, they should have extensive knowledge on credit requirements, improving your credit score, and be able to draw up a road map to home ownership. 
FHA even has options for credit scores below 580.

You should prepare to apply for your loan by gathering the needed documentation. With all of the documents you can paint a clear financial picture for your bad credit home lender. You can download the full docent checklist by entering your information below.

Primarily, your FHA lender will be looking at paystubs, identification cards, rental history, residence history, and cash available. Although FHA is a low to no money down loan program, the more money you have in savings will help the lender approve your bad credit home loan. 

money in savings that will not be used to purchase the home is called “reserves”. Reserves are viewed as a safety net if you were to run into financial trouble. As an example, if your new mortgage parent was $1,400 a month and you had $2,800, you would have two months in reserves. In other words, if you lost your job, you could make your mortgage payments for two months. You can use a 401k for reserves or stocks and bonds. 

Using an FHA bad credit loan to purchase a home means you will need to find a home that meets FHA’s minimum property standards. FHA wants to make sure that the home you are buying is safe and comfortable. You are more likely to make your mortgage parents if you are not spending money on repairs and are satisfied with your purchase. To learn about all of the FHA property requirements click here. 

To start the eligibility process give us a call at (518) 324-5544. We lend in all 50 states.