Bad Credit Home Loans – Coming Back
by : Editorial Team
Things are getting easier by the month. Values are up, interest rates are climbing and banks are coming back to the housing market by the dozens – and beginning to lend. It was a matter of time before the big pieces of the bad credit home loan come into play, and the chips are falling.
Programs like FHA, though not alone, are leading the way to helping people get themselves back into the housing market after a tough time, or enter the housing market for the first time. Low credit scores, low down payment requirements, (down payment assistance programs) and reasonable debt to income are now being accompanied by relaxed guidelines for those that have been hit hard by the recession.
The FHA has put in place stipulations that make it easier for people who have fallen into a foreclosure or bankruptcy. The break comes for those people who saw at least a 20% reduction of income over a period of at least 6 months that came from external forces. Quitting or losing a job does not qualify, but certainly health related issues and natural disasters are common reasons for financial hardship today. Most cases of foreclosure require up to three years of a wait period before returning to market, and some bankruptcies only two years, so this is a big break for those who had external forces – get back in now.
Frankly, this is great news for the housing market, and all those that feel they are on the outside looking in. Even if this does not affect you exactly, it does. There is now more than a handful of these loosening guidelines that can really spell mass return to the housing market, and many happy homeowners. Find out what you can do today, get in touch with a loan specialist now.