A Mortgage With My Credit?

You don’t have to be an economist to know that buying real estate property in Florida is risky. At least one hurricane or tropical storm makes landfall somewhere in the Sunshine State every year. Sometimes a second storm hits before property owners are even finished repairing the damage from the first storm. Some insurance companies will not even issue homeowners’ insurance and renters’ insurance policies in Florida, and when they do, the premiums are astronomical. The chances of a mortgage becoming underwater in Florida are almost as great as the chances of your garden gnomes being submerged because the rainfall was more than the limestone under your neighborhood could absorb. South Florida was one of the worst hit markets during the housing market crisis of 2008. Despite this, owning a house is one of the clearest paths to financial stability. Renters are in even worse shape than homeowners, even when you figure in the costs of homeowners’ insurance and repairing hurricane damage. You would jump at the opportunity to buy a house or condo and take out a home mortgage loan, if only you could qualify for one. Maybe you can. For help getting your credit score into shape to qualify for a home mortgage or other large loan, contact a Plantation credit repair lawyer.

Home Mortgage Options for Borrowers With Lackluster Credit Scores

There is no strict cutoff below which it is impossible to get a mortgage loan or above which you are guaranteed to get one. It depends on who is lending. Conventional loans are the most flexible about credit scores, but that does not mean that these loans are easy to get. The lenders will charge you a higher interest rate the lower your credit score is. Likewise, with an unimpressive credit score, you might not be able to get a fixed-rate mortgage at all. Adjustable-rate mortgages, where your monthly payment can increase unexpectedly, might be your only option. You usually need a down payment of at least 20 percent of the purchase price to get a conventional mortgage loan.

Federally backed mortgages such as FHA mortgages are a desirable option for borrowers of modest means. The minimum credit score to get an FHA mortgage is 580, and FHA mortgages only require a down payment of 3.5 percent of the purchase price of the property. FHA will even issue you a mortgage loan if your credit score is as low as 500, as long as you pay at least ten percent of the purchase price as a down payment. VA loans and USDA loans are similarly consumer friendly, but they are restricted to certain borrowers. VA loans are only for members of the military, and USDA loans are only available for properties in rural areas.

Work With a Debt Lawyer About Qualifying for a Mortgage Loan in Difficult Times

A South Florida debt lawyer can help you if you are trying to improve your credit score so that you can qualify for an FHA mortgage.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

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