People who are newly married and even family with kids need a comfortable home of their own to live a contented life. But houses are quite expensive and beyond reach for both the newlywed couples and families with kids. The newlywed couples are just beginning a new chapter in their life and do not have enough cash savings. Similarly, families with kids already have limited financial resources to manage their living and expenses.
People who have the desire to become homeowners but also have financial constraints rely on different home loan options at their disposal. The home loans or commonly known as mortgages are issued by banks, private lenders and government approved lenders. The banks and private lenders have strict requirements and examine every financial detail of the borrower before they grant the loan. Credit scores are one of the basic factors which decide acceptance or rejection of loans. A bad credit score means a person has missed debt payments of several months and it would be risky to give him/her a loan.
Easy home loans for bad credit mostly include government-backed loan programs which have relaxed requirements when it comes to bad credit scores and down payment. The government approved lenders offer Federal Housing Administration (FHA), Veteran Affairs (VA), and USDA (United States Department of Agriculture) which are insured by the government to lower the risk of the lender in cases when a person defaults on the mortgage payments.
The FHA loans are one of the best easy home loans for bad credit as people with bad credit are not only given a home loan but have to pay 10% down payment which is quite less than 20% of the conventional loan program. In VA there is no requirement of any credit score, and in both VA and USDA loans the down payment is also not needed. The interest rates of these government-backed loans are quite less when compared with traditional loans offered by banks