buying home bad creditBuying a Home with Bad Credit is indeed possible, but rest assured that the interest rate could be sky-high. There are lenders to help people with bad credit finance new, or refinance present homes. Buying home bad credit lenders may refer you to HUD (Housing and Urban Development).

HUD doesn’t give you the loan directly, but in some cases, HUD insures home loans for people who have had credit trouble and do not meet standard credit requirements. If you’re interested in a new home and you meet the credit qualifications, you may be eligible for a low down payment of 3 percent. On a $50,000 home, that’s a down-payment of $1,500, compared with $5,000 – $10,000 for most conventional loans. You also can wrap your closing costs and fees into the mortgage.

HUD-insured loans are available in urban and rural areas for single family homes and for 2-unit, 3-unit, and 4-unit properties. To get a HUD-insured loan, you need to apply to a HUD-approved bank, mortgage company, or savings and loan association for your mortgage.

Financial contracts can be very confusing. Before buying a home with bad credit and signing yourself to a major long term commitment; have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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