Edge of Bankruptcy

Submit Enquiry

Name

Email

Phone:

Enquiry Type

Comments

Enter Code:
Captcha

California Bad Credit Mortgage

By: Carrie Reeder

California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has the disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of the home appreciation factor. If you're going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?

Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices are high and if you already have poor credit, the fact that you need to be approved for such a high loan amount can be an added difficulty when trying to get a home loan.

However, there is hope. There are so many programs available today to help people with recent bankruptcys, collections and even foreclosures, obtain mortgage financing. There are nationwide mortgage service companies that can either approve you directly or get you in touch with a lender who can approve you.

Here are some suggestions of things you can do to aggressively help yourself get qualified for a mortgage loan in California, with a bad credit history:

1. Pull your credit and review it - Pulling your own credit will not negatively affect your credit score like having someone else pull it will. For a list of the links to the three major credit bureaus, visit this page: www.abcloanguide.com/credithelp.com. Look over your credit history and make sure that everything is reporting accurately. Sometimes, something as small as an account being reported as currently being due as opposed to being included in a past bankruptcy can be the difference of 10-15 or more added points to your credit score.

Make sure every account that is closed is reported as being closed. Make sure that every account that was reported in a bankruptcy is reported that way, and not being reported as money still owed. If you have small collection accounts, try to pay them off and then fax confirmation that the account was paid off to the major credit bureaus so that they can adjust your credit report right away. Editing this information on your credit report is easier than ever today because all three major credit bureaus now make it possible to dispute and inaccuracies online. You could pull all three reports, dispute all inaccuracies and be done in less than an hour now. Just a few years ago, it used to take hours or days to fill out all the necessary paperwork.

2. Find a seller who is motivated to pay closing costs or carryback a percentage of the loan - If you find a seller who is really motivated to work with you, that may help you get approved with a lender. If the seller can pay your closing costs, this can free up that money so that you may have a small down payment. If the seller is willing to carryback a percentage of the loan then the loan-to-value may be low enough that the lender may consider that as good as a down payment. If the seller is motivated to work with you, they may be willing to work through a down payment assistance program to help you make a down payment. It is illegal for a seller to give you the down payment for their house, but through down payment assistance programs like Neighborhood Gold and the Nehemiah program, it is totally legal.

3. Borrow or ask for a gift from relatives toward a down payment - After you have financed the house, you can usually take out a 2nd or 3rd mortgage up to the full value of your house, and then you would be able to repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

This article is free for republishing
Source: http://www.articlealley.com/article_4236_19.html


Don't Miss...
  1. Bad Credit Mortgage Loans How To Get Approved
  2. Bad Credit Payday Loans - No Need For A Credit Check
  3. Bad Credit Debt Consolidation Loans
  4. Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
  5. Think You Can't Get a Mortgage?
  6. Selective Mortgage Decision Making
  7. 100% Mortgage Financing With A Lowly "500" Credit Score?
  8. Survive After Bankruptcy Using Wilderness Survival Skills
  9. Home Mortgage-ARM Resets and Foreclosures
  10. How to Qualify for a Mortgage Loan
  11. Home Mortgage Loans - Fixed Rate, Adjustable Or Balloon, Which One Is Right For You?
  12. California Bankruptcy - Credit Score at Stake
  13. No Fax Payday Loans Online For A Fast Cash Advance Loan
  14. How You Can Use A Mortgage Loan Modification Prevent Foreclosure
  15. Bankruptcy Advice: How to Resolve Insolvency
  16. Bankruptcy and Raising Your Credit Score
  17. Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
  18. Loans and Credit cards. Bankruptcy on the up
  19. Personal Bankruptcy - IVA a better alternative?
  20. Bankruptcy Mortgage Information For Homeowners
  21. Should I File For Chapter 7 Bankruptcy?
  22. New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process
  23. Refinance Your Mortgage Loan After Bankruptcy
  24. Use Debt Consolidation Loans Before Considering Bankruptcy
  25. Bankruptcy Student Loans: A Boon to Students
  26. Home Mortgage Loan Pre-approval Online Keys When Applying For A Mortgage Online
  27. Bankruptcy Alternative
  28. Bankruptcy and Raising Your Credit Score
  29. First Steps to Take After You've Filed Bankruptcy
  30. Bouncing Back From Bankruptcy: Obtaining an Improved Credit Score
Latest...
  1. Adjustable Rate Mortgages - Understand The Benefits Compared To A Fixed Rate Mortgage
  2. Adverse Credit Mortgage Loan - Persistence Is The Key To Getting Approved
  3. Apply For Home Mortgage Loan Online With Bad Credit - Things To Consider
  4. Applying For A Home Mortgage Loan Online - The Pros And Cons
  5. Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit
  6. Bad Credit Mortgage Lenders - Things You Should Know About Subprime Lenders
  7. Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan
  8. Subprime Mortgage Lenders - Helpful Tips When Getting A Subprime Mortgage Loan
  9. Bad Credit Mortgage Lender - What To Look For
  10. Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing

© Edge of Bankruptcy 2008. All Rights Reserved