| If you have bad credit and would like to buy a home, | | | | On the other hand, if you have a ways to go it can |
| you probably already know that in the current market | | | | make sense to go ahead and enter into a rent to own |
| getting a mortgage is going to be difficult. The | | | | contract on a home that you plan to purchase in a |
| subprime market is gone and even FHA guidelines | | | | year or two. Most contracts will allow you to purchase |
| seem to be getting tighter all the time. | | | | at any time during the rental period, so you can always |
| As of 2010, most lenders will require that you have a | | | | get a mortgage as soon as your credit score allows. |
| credit score of at least a 620 in order to qualify for an | | | | Regardless of your situation you should understand |
| FHA loan. You might have heard that FHA guidelines | | | | that credit repair can take some time. There are no |
| do allow for lower scores. While this is certainly true, | | | | quick fixes and you should steer clear of any |
| you should keep in mind that it is the lenders, not FHA, | | | | company who presents some scheme that is |
| that underwrites your mortgage. Because of the | | | | guaranteed to improve your credit score quickly. |
| increased liability that they face, most of them are | | | | If you carry credit card debt, one of the best ways to |
| opting for higher standards than what FHA allows for. | | | | improve your credit score is by paying down your |
| If your credit score is less than this, you basically have | | | | debt. In fact, if you have the ability to pay off a |
| two options. You can continue to rent and work to | | | | significant portion of your debt, you should expect to |
| improve your credit so that you qualify for a poor | | | | see significant improvements in your credit score. |
| credit mortgage loan, or you can get into a rent to own | | | | Collection accounts can be address through several |
| home and work to repair your credit while living in the | | | | strategies such as debt validation and pay for delete. |
| home. Which option is best largely depends on your | | | | Both of these can be good alternatives depending on |
| situation. If you are only a few points away and have | | | | your situation. |
| already saved the money that you will need for your | | | | With a little hard work, you can eventually achieve |
| down payment, working on credit repair can make | | | | your dream of owning a home! |
| sense. | | | | |