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.

UPDATE October 2022: Due to the Treasury market influencing the funding costs for mortgage-backed securities, rates for credit scores under 600 may or may not be available. Unfortunately we cannot forecast for how long this market environment will continue.   

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 to 24 months still showing on credit or maybe over debt-to-income ratios? If the answer to these questions is yes, Clear Lending, one of the best mortgage lenders for low credit scores, 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 Houston, TX and looking 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 US 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  one of the trustworthy mortgage lenders for low credit scores, we  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 their 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 plus it will be approved on a case by case basis.

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 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 a 15-year loan with a 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 a 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:

  • Roy & Denita Hawkins • July 19, 2017

    Joan and Clear Lending were a blessing for our family! Prior to working with Joan, I ran into one brick wall after another with financial institutions that simply judged me based on a "credit score" without taking into account any contributing factors beyond my control. Fortunately for us, we met Joan. He was able to do something that up until that point seemed impossible...approval for a home purchase! He worked long hours and showed great patience. We have been in our new home purchase a little over two months and we owe Joan a great deal of credit. I recommend anyone who is interested in purchasing a home to give Joan a call before you give up. If it can be done he is the guy to make it happen! I have already referred a family member and they are excited. Thanks, Joan!

  • Marta Carino • September 28, 2022

    I am so happy I found this company online. I applied to multiple lenders and I was never taken seriously because my credit was not perfect. Since day one, I was assured if I followed their advise I would become home owner and it happened exactly as I was told. Thanks Joan, Patricia, Jorge and everyone else in the Team for helping me become a home owner. I will always be grateful for taking care of me in ways no one ever did.

  • Jim Bush • January 31, 2019

    FROM GOOGLE: I am a Disabled Veteran who found Clear Lending online. I worked with Joan and did everything over the internet without ever actually meeting him in person. This was a great expeiernce and he was wonderful and helped me with the whole process and answered any questions i had. This is an A++++ service place for loans for veterans. Would reccomend them to any veteran even with less than perfect credit. This people are awesome and Joan helped me with everything. I would suggest every veteran use him

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