If you have come down with a really bad case of a low credit score and wondering if you ever get out of it thinking about the possible future inside your own place. With dozens of rental payments made under your belt it seems only logical that alternatives flood your uneasy mind right now. As a hapless victim of some deeply undeserved circumstances which are in many ways extenuating you feel you can have a shot at bouncing back from the rock bottom even in that pitiful state of affairs. Somebody said, or perhaps we all said once we felt it first hand, that life is a struggle so why not trudge forward instead of lurching and arrive at what you have longed for.
Deconstructing Your Score
Take a long and hard look at your financial situation first. Bad credit means some or even all payables remain due and accruing penalty fees as another day goes by. Instead of inaction take a step forward and make a call to discuss things with your creditors. A letter containing a detailed description of your plight accompanied by showing proof that things can only get better could make some difference. If you have already lost a house to short sale due to some emergency, and the waiting period is coming to an end, the letter is a proper tool to back up your claim to renegotiate terms for a new home, if bought through FHA backed programs.
If no pleas and letter help you will be one step closer to filing for bankruptcy which would relieve of the pressures brought upon by demand collection letters and the similar, with some serious consequences regarding your situation.
FHA Loans at Your Service
Then again, if the above scenarios are not applicable to your particular case, see what possible alternatives are there to increase your credit score and in the meantime give FHA backed loans a chance. Those two ideas are not mutually exclusive as long you are gainfully employed or run a business that does not slack too much and generates enough of a decent income. The latter scenario means your business as a self employed person will always be affected by the ebbs and flows in the market, people’s tastes and industry’s demands while the competition is stiff. That would also determine to some extent the kind of mortgage loan you wish to take out, choosing between fixed and adjustable mortgages. With ARM mortgage loans rates fluctuate ruled by the condition in some market indexes applied by a given lender while there is a cap on the maximum rate possibly charged to avoid excess. You would be most advised to make sure the cap is firmly in place as obviously subprime loans crisis should serve as a lesson that no institution is free from greed as it is the people and their nature that rule them. Fixed mortgage loans on the other hand signify a more stable vision of the future with no surprises in the long run, but they also increase in general as it is hardly possible to keep them stable throughout the whole long span of 15 or 30 years. It is just hardly noticeable for the borrower. All in all mortgage loans for bad credit rating are possible but if you have failed to implement any strategy concerning your payables and incurred bad credit in result, perhaps it is time you did it now regarding your wish for your own place.