HUD, or Housing and Urban Development, is the department of the U.S. government that oversees the Fair Housing Act. Essentially, HUD is responsible for ensuring, among other things, that low-income families are afforded the opportunity to be home owners. Often, low income families have less than perfect credit which can make it even harder to get a home loan. You can buy a house through HUD with bad credit if you are diligent in your efforts
Instructions
1. Determine how much home you can afford to purchase. Before you tackle the issue of your credit, use the Ginny Mae home ownership calculator to determine how much of a mortgage payment you can afford to make. You should not attempt to purchase something you can't afford; ultimately, you could worsen your credit and possibly lose your home.
2. Apply for a federal mortgage loan. The HUD website directs people with bad credit to apply for a federal mortgage loan. You can apply directly with a federal mortgage loan approved lender (FHA) or you can speak with a HUD housing counselor. The HUD counselor can help you by showing you the best options available for you based on your credit situation. You can find a listing of FHA lenders based on criteria you specify or you can contact a housing counselor by using information provided by HUD on their website.
You can also apply for an FHA loan online. If you prefer not to use a traditional bank, Lending Tree will send your information to FHA approved lenders that also specialize in lending to people with bad credit. If you want the convenience of an online application process that allows more than one lender to send you an offer, this is the best route for you to take. Once the lenders have all made their offers, you can compare them and make your decision.
3. Research government options. The government offers different programs for different circumstances, such as home ownership programs through the Veterans Administration or Department of Agriculture. If you are a candidate for either of these programs, visit their websites for details on apply and what is required.
Tags: purchase, home, credit, federal mortgage, federal mortgage loan, mortgage loan, with credit, your credit, home ownership, housing counselor, people with
