Bad credit scores can happen to anyone. It is not something that results only from not paying bills on time. Scores can be lowered if people have too much open credit or are overburdened with debt. These issues can be corrected, but it does take time. When shopping for a home loan it may not be possible to raise the score high enough in order to get a traditional loan as quickly as the potential home buyer would like. There are other options and even with a low score, it is often possible to find a lender who will provide a Bad Credit Home Loan.
A credit union is a great resource for anyone that needs to increase their credit scores. They are more flexible about providing loans to their members who have less than perfect credit. It is possible to raise a credit score by paying back these loans on time. Small loans, often referred to as credit builder loans, can be a quick and easy method of improving a credit score. Many people will deposit the loan amount into their checking or savings account and use it to pay the loan payments.
Federally backed mortgage loans are also an option for consumers with poor credit who want to buy a home. There are many benefits to these programs because they offer low interest rates and the ability to buy a home with either a low down payment or none at all. They typically approve loans for buyers with credit scores as low as 520. With this type of program, many people are able to purchase an inexpensive home and pay less for their mortgage than what they have been paying in rent. With a Bad Credit Home Loan, it is possible that the improved credit over time may make it possible for borrowers to refinance auto loans or find credit cards with lower interest rates.
Schedule an appointment at Pearl Hawaii Federal Credit Union to discuss the home loan options they have available. Members of the credit union have many valuable programs and options available to them. Even members with bad credit can take advantage of many of the loan programs they provide. You can also connect with them on Facebook for more updates!