How Can I Get Approved For A Texas Mortgage With Bad Credit?

Tips To Get Approved For A Home Loan In Texas 

Financing is of high concern for people with bad credit. They are already extremely stressed by the mounting debt they have to pay off. With that, the late fees and interest are zooming out of control if they’re not making their minimum payments. If you’re dealing with a lot of debt and can’t get a loan you shouldn’t panic, you should look at what is the easiest mortgage to qualify for. It’s still possible to get a loan; however, it will be harder for you. The best thing you can do is to continue to work on your credit score. You may need housing now. It’s harder to rent an apartment if you have a poor credit score than it is to get a housing loan. You may want to consider the following options:

Remember That Most People Do Not Have Excellent Credit

You aren’t perfect? Neither is anyone else. Only 22% of Americans had an excellent credit score in 2018. Most fall within the low end of the 700. You’re probably suffering from a credit score that is at least 690 or below if you are reading this article. You have a lot more options if your credit score is in the 600 verses below 600. Those with a score of 620 can even get a conventional home loan. What if my score is below 600? There’s still hope for you.

A Co-Signer

Co-signers are commonly used by young people as they do not have a long history of credit or an adequate income in most cases. How do I get a mortgage on my house?  While it isn’t always possible, an adult may be able to get someone to co-sign for them. A stay at home mother, who has recently gotten divorced, may be able to convince her ex-husband to Co-Sign for a new place. The more willing he is to support his Ex-spouse, the better he will look in court during proceedings. 

The Co-signer is promising that he or she will be responsible for the debt if you do not pay your mortgage. He or she will also be subject to a credit score reduction if he or she does not take on the debt. Parents often do not trust their kids enough to do this. It’s less likely it will happen for an adult that’s over 26. Let’s look at other options:

Make A Larger Down Payment

Many lenders will offer you a loan with a larger down payment if you have a poor credit score. There is a limit to this. This is more likely to happen if you have a credit score that at least falls above 590. Those with extremely poor credit scores may not be given this option and will have more strict conventional loan requirements.

State & Federal Programs 

Some programs may be available for you. As an example, veterans can get help through VA financing. VA financing does not have stringent rules about credit scores and requires no down payment. Those who are willing to live in rural areas can get a USDA loan. These loans are insured by the government. You have less to lose if you can’t pay. Also, you should avoid urban housing if you are struggling financially. Urban housing is way more expensive anyway. 

HUD housing does not require a credit score at all. Families with children, the elderly, and the disabled will be the priority for HUD housing. You cannot get HUD housing with a felony, especially if it is violent or sexual. HUD housing does have a max income cap. It may vary depending on dependents. 

It’s Possible To Get Housing

The government does not want people to go without housing. That’s why there are many home loans in Texas. You may be living with a false perception if you believe that you do not qualify. This is especially true for those with a credit score in the 600s.

Before making a decision, let one of the experts at The Texas Mortgage Pros help you find out exactly what loan is best for you.  Feel free to contact us or call us today!

Leave a Reply

Your email address will not be published. Required fields are marked *