Fortune not only favors the bold but also those who fail to do well in their credit score! While there is no denying that availing a good sum as a home loan largely depends on your FICO score, one need not stop their dream whatsoever! Here are some useful tips to avail home loans even if you hold a bad credit:

Ensure that you do not have any outstanding or delay in payment for the last 12 months. Lenders would certainly consider the fact that you might have gone through certain hardships in your life and would be more than willing to extend your home loan, provided your 12 months statement is as clear as milk!

Be very careful with nonpayment of small bills. There could be some $50 bill toward a plumbing job that you availed six months back. You might have either overseen it or ignored it! Trust us – you would be taken by a great surprise when you see your credit score report. The $50 bill will continue to act against you and will make your home loan dream far-fetched. Every single bill has to be paid and that too on time, should you require a home loan!

Maintain a good debt to income ratio. To simply put this across, it is the ratio between how much you earn and how much you pay in terms of bills, loans, and your personal monthly expenses. The more loans you have, the more the debt to income ratio will be. This means that that the chances of getting a new home loan are weak. You might think you are smart enough to refinance your existing mortgage, but that might backfire if you end up having more liability than what you earn.

Meet up with low credit mortgage lenders and understand the whole process. There are quite a lot of them in the market. They run many credit home loan programmes that give a new ray of hope to those with dreams of buying their own house.