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Job loss, investments gone awry, unexpected emergencies have all taken their toll on consumers in these financially troubled times. People have started tapping their savings as gas prices and food prices seem to inch up on a weekly basis. Unfortunately, a good percentage of the population has taken a hit on their credit ratings. And since the home loan debacle of the last decade, when they were passing out loans like Halloween candy, home loan lenders have very much tightened their lending requirements, setting lending benchmarks that are quite high. Keep Your Fingers Crossed Even folks with good credit histories keep their fingers crossed when applying for various types of home loans because of the tight qualifications. However, as a reaction to the surge of poor credit borrowers and the high demand for flexible loan programs, lenders have recognized a growing (and profitable) lending market and have started designing poor credit home loans to meet the surge. Some Poor Credit Home Loan Considerations The lending programs for poor credit home loans are set up in such a way that they allow poor credit borrowers to side-step or work around credit problems and other financial concerns. Consider these three types of poor credit home loans. Consideration: The 80/20 Loan This type of loan is considered an excellent program for people with poor credit histories, especially if they have not managed to amass a sizable down payment. They are becoming more popular and are starting to be widely used. This option allows you to take out two loans to purchase your property. You see, 80% of the purchase price is covered by the first loan, the second loan covers the other 20% and that is basically considered the down payment. Also, in many instances, this type of loan can help you avoid paying for private mortgage insurance by the way they are executed.. Consideration: The Cosigned Loan This type of loan depends on an angel. They are great for poor credit home loans. They are also easily approved because two parties become responsible for repayment of the loan. You need to find a friend or family member with whom you share a bond of trust to sign onto the loan. The person should be interested in your personal and financial well-being. Of all the types of loans available, it is probably the worst should you default. If you do, the friend or family member must bear the burden of paying off the loan. You do not want that to happen to someone you trust or love. Consideration: The Government Backed Loan Both the Federal Housing Authority (FHA) and the Veterans Administration (VA) both stand behind certain home loans made to certain home buyers. The government does not actually turn over the cash to purchase the loan. What they do, if you meet certain qualifications, they insure the loan from a traditional lender. Having that federal reassurance comforts lenders and they tend to approve these loans even if they are taken by poor credit home loan buyers. A Home of Your Own and a Good Credit Rating Although these financially and economic roller coaster times have hit many in the pocket book and on the credit rating books, it is nice to know that there are ways to get the financing you need to own a home. Also, being faithful to the repayment terms – paying on time, every time – will not only keep a roof over your head, but also will do wonders for your credit scores. Mary Wise is an expert in the financial industry and knows exactly how to aid you in getting approved for the loan or credit card you need. She has helped a lot of people to obtain Loans for People with Bad Credit, home loans, car loans, unsecured credit cards, payday loans, Bad Credit Loans and many other products regardless of their credit situation through his website http://www.badcreditloanservices.com
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