First Time Home Buyer
With Bad Credit
Here's help for people with bad credit
who want to buy their first home.
In a perfect world all potential first time home buyers would
have excellent credit reports. Unfortunately, we don't live in a perfect world.
And not every person who would like to buy his first home will have a high
First Time Home Buyer Grants in Every State
Up To $10,000 Down Payment Assistance
If you are a first time home buyer with bad credit, there is
hope. It is still possible to qualify for a first home loan even with bad
credit, but you would be far better off to take 6 months and get your credit
repaired before applying for a mortgage.
The 6 months that you spend repairing your credit and building
your credit score will provide years of benefits. The benefits will be twofold:
you'll save tens of thousands of dollars over the life of your loan, and you
will also be able to afford more house when you do make the purchase. Let's look
at an example.
We'll look at two numbers: the first with a good credit score,
the second with a poor credit score. In each example the loan amount is
$150,000. Let's say that with a good credit score you could get a mortgage
interest rate of 6%. Your monthly payments would be $899.33. Over the entire 30
years of the loan, you would pay an additional $173,757.28 in interest.
Now, if you have a poor credit score, your mortgage interest rate
would be about 8%.
Bad credit mobile home loans will carry an even
higher rate of interest. Your monthly payments would be $1,100.65 and over the 30 year
pay back period you would pay $246.232.87 just in interest.
Having a good credit score would save you over $200 per month and
more than $72,000.00 over the life of the loan.
Applying for your first mortgage with good credit is a far wiser
move than applying as a first time home buyer with bad credit.