Your credit score is 550 and dropping, you live in northern California where the average home price is $600,000. The good news is your new career has a high income level and you earn between $7,800 to $8,200 per month.

You are single and your tax lady told you to purchase a home or plan on paying Uncle Sam 20% or more of your income each month. You have nothing against Uncle Sam, but you don’t want to give up $1700 to $1900 a month.

Your credit score is low because of the divorce, there was no alimony or child support involved. So now you are wondering, who’s going to give a truck driver, with poor credit a home loan?

There are Lenders called Sub-prime Lenders who make loans to people with sub-prime credit. You will need to pay your closing cost and perhaps you can locate a seller who will finance the down payment, or if you purchase in Oakland, California, the city will provide a $50,000 Down Payment Assistance. (The water front condos in Oakland are great) Yes, the interest rate is higher for sub-prime loans, however, after you pay your mortgage (on-time) for 12 months or more, you can qualify for a lower rate. Talk to your Mortgage Broker and be sure to get a loan (if possible) without a pre-payment penalty.

(Check with your city to find out if they offer a First Time Home Buyers Down Payment Assistance Program)

Keep driving your old truck and when you refinance your primary residences in 12 months, you might want to purchase a small investment property for rental purposes as well ………. do this every 18 months and before you know it you will have a solid seven figure net worth….. and just to think your wealth building started out with a credit score of 550!

This short article was written by Cassandra Ingraham, Home Loan Specialist for http://www.taxeswilltravel.com Taxes Will Travel specializes in reducing Tax liability through home and investment property ownership.

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The truth is that there are many lenders willing to approve home loans without down payments even for people with bad credit or no credit history.

Things to watch closely
The smart thing to do is compare what the different lenders have to offer. Things to consider are interest rate, fixed or variable rates, down payments, closing costs, loan options for self-employed, years of employment required, repayment periods and other fees and terms. First of all, decide which conditions are essential to you, how much you can pay on a monthly basis and what are your limitations. With that information you’ll be able to compare your needs with the loan offers and make a conscious decision.

Interest rates and credit rank
Interest rates vary from one lender to another, and they also depend on your credit so you may want to obtain a credit report and check that there are no incorrect facts on your report. You’ll also want to postpone any other loan or credit cards applications as any variation will be recorded on your credit history.

Fixed or Variable rates
Fixed rates are the best option for the safe and cautious, however they are always higher than variable rates. On the other hand if you opt for a variable rate you may pay less in interests but you are risking that any modification on the market may trigger an increase in your monthly installments.

Down Payment
Whether you’ll need to make a down payment really depends on your credit situation. Nevertheless there are lenders willing to take the risk of approving people with bad credit for 100% mortgage financing.

Other requirements, costs and fees
Though generally traditional lenders require two years of employment in order to approve a loan application, there are plenty of new lenders on the market specialized in different credit situation with many flexible options for newly employed and self employed people. Finally you should also pay special attention to closing costs, repayment periods and other fees and costs as they may be significant at the time of comparing which lenders and loans are the best option and whether they suit your needs or not.

Finding the right lender
As you can see the key to finding the best home loan program is to choose the right lender and the right loan. This can be done easily and without annoyances by using the services of online companies that offer access to many home loan lenders and their quotes.

Finding a home loan doesn’t have to be a complicated process, you just need to follow the tips we have presented and you’ll soon be able to make a conscious decision in order to find the home loan that suits your needs.

Kate Ross is a professional consultant with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams.
If you need more financial aid visit her Website or just copy speedybadcreditloans.com and paste it in your browser’s address bar.

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