Straight Talk for People with Less than Perfect Credit Scores

You don't have to look far to find a scary story about the woes of financing a home mortgage with less than perfect credit scores. The lack of positive experiences can make any dream of homeownership seem like a fairy tale.

There is still a way to finance your dreams; you'll just have to be a little more proactive. Reliable mortgage loan programs are available for people with low credit scores and there are quite a few federally subsidized home loan programs. You can also seek out reputable credit repair companies that can help you clean up your credit history and get you on your way to homeownership.

Higher Costs for Lower Credit Scores...

Unless you have a fairly good credit score, you can expect to pay higher fees upfront for the initial cost of your mortgage loan and a higher interest rate over the life of your loan. The good news is that mortgage rates are still near historic lows.

...But don't lose hope

  • Save as much as you can for a down payment. Putting down cash that you have saved yourself makes you less of a risk to mortgage lenders. This may also help in lowering your interest rate.
  • The possibility of refinance is another reason to work on improving your low credit score

It's Never too Late to Raise Your Credit Score

You may be discouraged by your poor credit score now, but there are things you could do to change it for the future.

  • Stay on top of your current payments and keep your number of credit inquiries to a minimum as excessive inquiries have a tendency to hurt your credit score.
  • Try to avoid applying for any new credit cards, car loans etc.
  • Try to establish a good credit history by keeping balances low and paying bills on time. Stay well below your credit limits.

Ditech is Here to Help you with your mortgage financing needs

We want you to be happy with the mortgage loan you end up with. Improving your credit score can help you get the right financing to make sure your dreams of homeownership are realized. Once you've established a good credit rating, ditech is here to help you with all your mortgage financing needs. Check out these great, low cost programs.

Disclosures

ditech is not a financial advisor or a credit repair company, and the materials contained herein are for informational purposes only. Consult a financial advisor before making decisions regarding important personal finance issues.