It seems these days that bad credit is rampant. With a record recession in place, credit scores are sinking into the red faster than ever. It’s no surprise that bad credit is common, far more common than good credit. Fortunately, even if you have poor credit, you can still buy a home with bad credit.

If you want to get a mortgage with bad credit, you basically have only a few options available to you. The first, and arguably the best, is to first improve your credit score, then apply for a traditional mortgage.

This is one answer that most people don’t like because it takes quite a long time before you can improve your credit score. Typically, it takes a year or two of careful work to fix your credit up to the point where you can qualify for a low interest rate home loan.

There are several things you can do to repair your credit score. You should get your credit report from all three major credit agencies to see what you are dealing with. Mortgage firms and banks will be looking at your credit report and so should you. Once you have your report, you should carefully look through it to verify that everything is right. If you do find any credit errors, you can report these to the credit agency that publishes the report to get it investigated, and if proven true, fixed. You can actually increase your credit score a fair amount by fixing credit errors – and this alone may be enough to pump you just enough to qualify for a traditional home loan mortgage.

You can also repair your credit by using credit. You should seek out new forms of credit – this is what will help build your credit score. If you already have a credit card, make sure it stays paid off. Use it once a month, but ensure that you pay the balance off each month in full. If you don’t have a credit card, you need to get one. There are secured credit cards for people with bad credit out there that you can get even with poor credit. You will have to pay a deposit on this type of card, but using one can repair your credit over time – provided that you pay it off each month.

If you need a house right away, the other option is to seek out a bad credit home loan. A bad credit home loan – also called a subprime loan – is given to people with low credit scores. These loans make owning a home possible if you have had problems with your credit history. Now, you need to be aware, subprime mortgages come with steep interest rates. You are going to need to be certain you can afford the mortgage. The recent housing crises was caused by people who took out subprime loans without the means to repay them. There have been laws passed to make it more difficult to get subprime mortgages however. Even if you have bad credit, you are going to need to show proof of income now.

If you do opt for a bad credit mortgage, you should spend time looking online for the best mortgage rates possible. There are a ton of online poor credit lenders who are eager for your business – especially since the housing crash. You can, if you do some comparison shopping online, find some good deals on poor credit loans.

How to get a house with bad credit? By spending some solid time doing research before making any decisions. As stated, there is no substitute for good credit when getting a mortgage. But, if you can’t afford to wait, a bad credit loan may be what you need to get your home, provided you can afford the mortgage.

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