There are a few complications with that strategy:
- Perhaps Not all lenders will provide that kind of arrangement. Most won’t go below 580, even on an FHA loan. You’ll want to do some severe research to locate a loan provider that will.
- The basis for the lower credit rating will make a difference. As an example, in case your credit rating is 525, you probably won’t get the loan because you had foreclosure two years ago. Similar does work if you possessed a bankruptcy inside the year that is past.
- The cause of the bad credit must be circumstances” that is“extenuating. Continue reading “Problems for the FHA ten percent down strategy”