Buying a home is the goal of many people across the country.
Home ownership is the symbol of wealth and success to many individuals.
One thing that can have a significant impact on whether or not you are able to own a home is your credit rating.
Your score will determine if lenders approve your loan application or not.
Getting poor credit home loans approved is possible if you are willing to put the work in.
One of the best ways to get a home mortgage approved is to apply for a FHA (Federal Housing Administration) loan.
These loans are government backed loans.
This means that if you default on the loan, the government will cover your losses.
Because these loans are backed from the government, many lenders are often willing to approve borrowers who have FHA approval.
Another benefit of the FHA loan is that a borrower doesn't have to worry about having a very low credit rating.
These loans are designed to allow borrowers who wouldn't be traditionally accepted for loans to get approval.
They place a greater emphasis on the borrower's recent credit history within the past couple of years.
Borrowers are also expected to have a good debt to income ratio for the loan.
If you don't have a good debt to income ratio then you shouldn't expect to get approval for the loan.
You debt to income ratio will determine how likely you are to pay off poor credit home loans.
A good way to improve your ratio is to pay off any outstanding debts that you might have.