Mon - Fri 10:00 am - 7:30 pm / Sat Appointment Only

Low Credit Home Loan Programs:

Get Home Loans for Bad Credit at Most Attractive Interest Rates

Government

FHA home loans come with the most attractive interest rates since the loan is insured by the FHA. The qualification requirements are simple and flexible.


PROGRAM UPDATE DUE TO CORONAVIRUS COVID-19:  Due to recent pandemic events affecting the stability of our lives, creating uncertainty in our financial markets and thus impacting its liquidity negatively, some programs may need time pending a resolution before they are fully available. Also, a loan with a low credit score may require us to use our preferred real estate agents to avoid delays. Feel free to proceed with your application regardless of your credit scores, and we will do our absolute best to update you and give options on how to proceed with your loan process to a successful closing. Thanks.

The following program only applies to the purchase of a primary residence.    

Low Credit Score Home Loan Programs: Get Home Loans for Bad Credit at Most Attractive Interest Rates

Have you recently been denied a mortgage loan over credit scores? Has your loan been denied over late payments older than 12 months still showing on credit or maybe over debt-to-income ratios? If the answer to these questions is yes, Clear Lending offers Home Loans for Bad Credit in Houston at best interest rates. Furthermore, Clear Lending also provides possible solutions for cases where debt-to-income ratios were slightly higher than needed.

Federal Housing Administration (FHA) home mortgage loan programs are among the most popular first-time home buyer loans in the United States to purchase a home. If you are in the market to buy a home, Clear Lending can help you get an FHA mortgage loan at the best interest rates.

FHA is a government agency under the U.S. Department of Housing and Urban Development, which ensures first-time home buyer loans to offer low-income homebuyers money to borrow money for property ownership. As a borrower, you would need to pay mortgage insurance to protect the mortgage lenders' interest in case of default.

FHA home loans come with the most attractive interest rates since the FHA insures the loan. The qualification requirements are flexible and straightforward, and we at Clear Lending are committed to helping our clients get the best loan program.

Things You Must Know About the FHA First Time Home Buyer Loan Program:

1. Low Credit Score:
First time home buyer loans are one of the best home loans for low FICO credit scores in Houston because of its minimum credit score requirements. If you have a Credit Score of 580 or higher, you would be able to get a mortgage with just a 3.5 percent down payment. For borrowers with credit scores between 500 and 579, at least a 10 percent down payment is mandatory.

Homebuyers under 500 credit scores are generally not eligible for FHA mortgage loans. FHA offers some concessions for applicants without credit history categorized under "nontraditional credit history" or "poor credit scores" and who meet other requirements. However, such mortgage loan applications are treated on a case by case basis, and our mortgage experts will educate you on your eligibility with home loans for bad credit in Houston.

2. Down Payment Source:
There are no significant restrictions on the source of your down payment. Besides your savings, FHA also uses other sources such as grants from local or state down payment assistance programs or family gifts to facilitate homeownership.

3. Closing Costs:
Here too, FHA offers you certain flexibility. Under the FHA loan program, a home seller, lender, or builder can share the borrower's closing costs burden. These include title expenses, origination charges, reserve requirements, and other charges. Also, you have the opportunity to add the closing costs with your mortgage and request the lender to increase the loan's interest rate.

4. FHA Approved Lender:
The Federal Housing Administration is an insurer and not a lender. Therefore an applicant in need of an FHA mortgage loan program will need to apply through approved lenders such as Clear Lending lenders. We maintain a licensing relationship with the best lenders securing our applicants' requests to be supported. The mortgage loan interest rate and its closing costs may vary between lenders. At Clear Lending, we will guide you to Houston and Texas's best interest rate, offering you the absolute best deal.

5. Banks vs. Mortgage Brokers:
Applying for an FHA First Time Home Buyer Mortgage Loan Program involves a lot of research. Banks and lenders follow varying underwriting standards with closing costs, and its services are also changing. Add to it that you will have to provide new credit records each time working with Mortgage Brokers offers you many advantages. They require one credit report, which helps you retain high Credit Scores (multiple applications reduce Credit Score) and help you get the loan at the best interest rates.

6. Mortgage Insurance:
Two types of mortgage insurance premiums have been made mandatory by the FHA. First, you must pay an upfront premium of 1.75 percent of the loan amount. You must pay this when you get the loan, and this can also be financed as a part of the loan amount. Second, you must pay an annual premium, which has to be paid monthly. This, however, varies depending on the borrowed amount, the term of the loan, and the initial LTV (loan-to-value ratio)

Annual premiums Payable for FHA Loans:

Chargeable @ 0.7% for a 15-year loan with a down payment of less than 10%
Chargeable @ 0.45% for 15-year loan with down payment of 10 % or more.
Chargeable @ 0.85% for a 30-year loan with a down payment of less than 5%
Chargeable @ 0.8% for 30-year loan with down payment of 5% or more.

If you want to purchase your dream home, wait no longer, and find out the amount you are Pre-Approved.

At Clear Lending, we help our customers need an FHA Home Loan Program to purchase a home or refinance an existing FHA loan program. Please complete our secure encrypted Pre-Approval Form online, and we shall review it and get back to you with the best options.

Not all applicants will qualify. This advertisement is not an offer for an extension of credit. Please meet with a licensed loan originator for more information as programs are available only to qualified borrowers. Programs rates, fees, terms, and programs are subject to change without notice. Not all loans, loan sizes, or products may apply. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet loan-to-value requirements, and final credit approval. Approvals are subject to underwriting guidelines and program guidelines and are subject to change without notice. Some restrictions may apply.

Customers Reviews:

  • Nicole Elizabeth • June 05, 2015

    Joan was amazing! After being let down by Chase mortgage company, Joan and his team picked up the pieces and helped me out tremendously! I would recommend going through him for loans instead of a big commercial bank. No matter what time of day; he would answer any questions or reached out to me about any concerns. He is with you and the realtor every step of the way to help get you a home. Very passionate about helping clients get a home! I would like to thank Joan and his team for helping me get my first home! Y'all made the home buying process easy for me! Thank you again. I love my home.

  • Blanca y Esteban Martinez • January 31, 2014

    Dear Joan,

    You and your team have been a blessing for our closing. Your integrity, efficiency and expertise support during our buying process has made an excellent and pleasant experience on closing. There are many people that makes good business, but you are doing GOOD, while doing business. God bless you and thank you so much!!

    Blessings,

    Blanca

  • Mireia Rivera • March 03, 2020

    My husband and I are very happy to give these 5 stars. From Haverhill, Massachusetts to Houston TX. ClearLending, with open doors, and with limitless help of Patricia and Joan, today we can say “We are home owner’s”. We are truly blessed! There was never an unanswered question or unanswered phone call. There were with us step by step even though we were 1900 miles away. We would like yo take this opportunity to say thank you! You guys are great!

Get Your Very Latest Rate Quote Now!

If CELL Phone number is not valid we will not email your Quote