We all make mistakes in life, still, society isn't very forgiving when you are cursed with bad credit. If you're overwhelmed with student debt, you have a rash of late payments or have some collections on your record, it can be hard to find a job, get a phone or even find a place to live.
If you are looking for a home, though, you have options. Whether you want to rent or own, getting a great pad isn't only for people with stellar credit.
How to buy a home when you have bad credit
If you are looking to buy a home, you might want to wait until you clean up your credit. However, if you're willing to jump through some hoops and possibly enlist a little help, it is possible.Even you have bad credit, money talks. Many lenders will overlook low credit scores if you are able to shell out a 20 percent downpayment.
If you can't pull together a large downpayment, an FHA loan is another option. It could mean higher fees, and you will likely have to pay mortgage insurance, which can be pricy, but it can get you into your house.
Talk to your lender. Some credit transgressions can be forgiven if you have a history of on-time payments for things such as rent and car payments. Explain why you have bad credit. If you have a few months of expenses in the bank, a lender might look at that favorably as well.
Source: Yahoo
How to rent a home when you have bad credit
You would think renting would be easier when you have bad credit, after all, a landlord can evict a renter faster than a bank can foreclose. Surprisingly, though, even renting can be a challenge. There are things you can do, though.You can find a co-signer. A friend or relative who's willing to sign the lease can get you into the rental of your dreams. Just make sure you pay your rent on-time, though, or you might risk your relationship.
Be honest with your prospective landlord. If you explain your situation before they pull your credit report, they might understand, especially if you have good and legitimate reasons. References might help, as might receipts from all the bills you do pay on-time.
Another option is to pay a few months upfront, either in the form or a larger security deposit or a few months' rent.
A shared apartment could take you out of the lease equation in the first place. Perhaps your roommate would be willing to sign the lease.
Source: TruliaOne of life's most basic necessities is a roof over your head. Don't let bad credit keep you from your next home.
Featured image via Pexel.
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