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Finding housing loans for people with bad credit may not be a hard as someone may think. Some subprime lenders can approve financing for a housing loans with a credit score
as low as 500. However, these housing loans for people with bad credit will come with a high interest rate and a larger down payment.
One important factor that housing lenders look at on your credit report is unpaid accounts that are in collections. Fortunately, most housing lenders only look at accounts at $500 or above. Our
suggestion to people with bad credit is to pay any overdue collection accounts to under $500 dollars. However, past due child support needs to be paid to current in order to get financed for housing
loans.
If you have no credit cards that are open, we suggest obtaining one or two unsecured or secured credit cards before applying for housing loans. Once these credit lines are obtained, make at least six
months of on-time monthly payments while keeping your credit balances under 50% of your total credit lines. This will improve your credit score and greatly improve your chances of getting a housing
loan.
When seeking housings loans for people with bad credit, we suggest obtaining a mortgage broker instead of going directly to a housing lender. Mortgage brokers can greatly increase your chances in
obtaining a bad credit housing loan because they work with many different lenders and if find the best lender for your situation.