Can You Get A Mortgage On Bad Credit?
It is common knowledge that your credit score and credit history is considered when applying for a mortgage. What some people may not know is that it is the main consideration since it is a summary of your financial situation. This enables the mortgage lender to know whether you are a high-risk borrower or a low-risk borrower depending on your risk of default. Do you wish to own a home in Fort Worth but bad credit is stopping you? Prodigy Lending wishes to let you know that you can still get a mortgage on bad credit.
First of all, what exactly is bad credit? Bad credit is the inability of an individual or an organization to pay off debt. This can be caused by situations such as bankruptcy, foreclosure, charge offs among others. The United States government has greatly intervened to make t possible for people with bad credit to take up a mortgage. This has been done through the FHA loan program which is insured by the Federal Housing Authority. These loans are targeted for poor and middle-income families as well as people with bad credit.
In Fort Worth, the average cost of the property is one hundred thousand U.S. dollars. This is not affordable to neither poor and middle-income families nor people with bad credit. The next logical step would be to apply for a mortgage and the FHA loans give these you a chance to be a homeowner. The requirements for an FHA loan can be easily met such as having a valid Social Security number, proof of residency and stable employment history or have worked for one employer for at least two years. Moreover, FHA loans also have rules that allow people who have had foreclosures or those who have been bankrupt before to qualify for these loans.
In addition to the simple requirements, FHA loans require very little down payment to secure the mortgage. However, you should note that the down payment may be as low as 3.5 percent but may rise to 20 percent depending on the risk level of the loan applicant. Furthermore, FHA loans are transferrable to the buyer of your property. A great advantage to these loans is that you do not have to carry the burden alone since family and friends can help you pay off the loan. In every state and county, there is an FHA loan limit set for the area and this is important for the borrower to check before applying for an FHA loan. Therefore, if you are a prospective borrower in Fort Worth, you can check the loan limits for your county in the state of Texas
In Fort Worth, with the average property cost of $100,000, applying for an FHA loan is easy and Prodigy Lending is here to aid you in this process as we are approved by the Federal Housing Administration.
Contact us today for more loan information!