People with bad credit can still get Home loans, thanks to FHA loan program
A loan is an amount that can facilitate the process of buying for nearly every person. The loan amount is given from the lender to borrower on the condition that the money lent would be returned to the lender after agreement on the interest rate and duration of the loan. People require loans for lot of purposes such as for financing home purchase, business, buying a car or supporting their education fees.
One of the key factor that many banks and private lenders analyze before granting a loan is the credit history of the person. A credit score reveals how efficient a person has been in paying back the loan he took. A good credit score like 620 to 719 represents that loan payments have been on time and person is illegible for taking another loan or mortgage payment. A bad credit score which is from 579 or below shows that a person has not been able to pay his due loan repayments on time and it would be risky to grant him another loan as he would be likely to default on the loan.
Federal Housing Administration (FHA) home loans have this category of home loans for bad credit in Houston that allows people with bad credit score to also be illegible for a home financing loan. The banks and mortgage lenders are very cautious to accept loan application if the person’s credit score is low but their concern is also addressed in the FHA loans as the interest rates are set quite high and a person has to pay some additional amount as down payment and insurance premium.
Home loans for bad credit in Houston at least gives an opportunity and chance for people with bad credit to conveniently become homeowners.
Joan Gallardo with his 18+ years of experience as Senior Loan Officer is a wealth of knowledge dealing with Home loans for bad credit in Houston. Through his articles, you can get to know various about the various requirements that are set by Home loans for bad credit in Houston along with information on applying for different FHA loans, eligibility criteria and benefits.