Everyone knows that one of the most important factors that lenders look at when applying for loans is the borrower’s credit rating. If you have an excellent credit rating, you will often find it very easy to get loans approved. This usually means that you can get your loans approved with the best interest rates available. On the other hand, if you have a poor credit rating getting a loan will be quite difficult. Getting low credit mortgages approved can be quite tricky if you don’t know what you are doing.
The first place you should look if you are interested in a low credit mortgage is at FHA loans. The FHA loans are very popular because they give bad credit borrowers an opportunity to gain access to mortgages. FHA loans don’t consider the borrower’s credit rating as the most important factor in the loan. The will often look at your credit history for the past year and see if you were able to make consistent payments for your loan.
Saving up a down payment for your loan is very important if you want to get a Federal Housing Administration loan approved. The more money you are able to save, the better the chance that you will get loan approval. Saving up a higher down payment for the loan will also give you a lower interest rate for the loan.
You should also make sure that you pay down some of your high interest debts. You debt to income ratio is something that many lenders consider very important when they are accessing your low credit mortgage application. Be sure to keep your debt to income ratio low if you want to get a mortgage loan approval.