Financing a Michigan home with bad credit is possible, depending on several factors.
Buying a house in Michigan with bad credit will, in most cases, require you to take steps to improve your credit prior to applying for a mortgage. FHA mortgage loans are possible with a low credit score if you have a large enough down payment, have zero collection or charge-off accounts with balances showing and have had at least 12 months without a late payment showing on your credit report. If you do not meet these requirements, you will need to bolster your credit score.
Instructions
1. Review your credit report closely. See how many late payments appear in the past 12 months. Count how many late payments you have for the past 24 months. You must have at least 12 months without a late payment to apply for a mortgage.
2. Check if you have any outstanding, negative or closed accounts showing an amount due. Total the amounts. You will need to pay off or settle any outstanding debt prior to qualifying for a mortgage.
3. Contact your local Michigan Housing Development Authority office. Schedule an appointment and bring your financial information. A Michigan counselor will advise you of specific steps to take to qualify for a Michigan home.
4. Save as much money as possible for a down payment. The lower your credit score, the higher the down payment..
5. Pay down any credit card debt. The lower your balance, the higher your credit score will rise.
6. Visit a Michigan mortgage lender specializing in bad credit loans. The mortgage lender will determine if your situation qualifies for a loan now, or what additional steps you will need to take. The lender may advise you to dispute items on your credit report, open new credit to bolster your score, settle certain debts or state an exact amount to save for a deposit.
7. Follow the advice and steps the mortgage lender and the Michigan Housing Development Authority counselor suggested, if you are unable to qualify for a loan upon your first meeting.
Tags: your credit, credit score, credit report, down payment, mortgage lender, will need, with credit
