A Bad Credit Home Loan Can Make You A Homeowner Sooner Rather Than Later

Interest rates and home prices have risen over the years making it harder and harder for first time buyers to qualify for a home loan. Many financial analyst say now is the time to buy a house before rising rates price you totally out of the market.  But what if you have bad credit?  Can you buy a home right now if your credit is not up to par?  For a lot of consumers with bad credit the answer to that question is yes. If you have had credit problems but have a minimum credit score of 580 and stable income, in most cases, you will be able to qualify for a bad credit home loan aka sub-prime mortgage loan. Sub-prime mortgage loans specifically cater to people who have had credit problems such as bankruptcy, late payments, judgments, collections and a high debt ratio. So... what this means is if you have these type of problems you may still be able to buy your dream home now rather than having to wait years while you try to clean up and re-establish your damaged credit history.
With a bad credit home loan you should expect to pay a higher rate than you would with a standard conventional loan.  How high of a rate you pay will depend on several factors:

• Your credit score


• Your debt ratio


• The severity of your bad credit


• The lender you choose

Article Source: http://www.diyarticlelibrary.com

About The Author: Levetta Rivera is a successful mortgage broker, author and publisher of the following financial site: www.militaryvaloan.com

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