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.

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 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.

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:

  • Ashley Magallan • August 21, 2018

    I owe it all to Joan for making our dreams come true. I never thought I would own a home, but Joan made it happen. He was there for me at all hours of the day with questions and concerns I had. Everyday he would communicate with me, on how the process was going. Joan is on top of everything and SUPER fast. If any one is the need of buying a home, I would totally recommend him!

  • Jerald Sidney • October 12, 2016

    Joan, you are the man with miracle hands! I have really been enjoying my new home. It was a long time coming and it happened right on time. Thanks to you, this whole process was phenomenal. The closing went smooth with no problems. I appreciate the professionalism, the hard work, and the late hours. I would highly recommend your services. Again, thank for everything!

  • Gerardo & Brenda Olivares • May 07, 2014

    Joan,

    Thank you SO much for all of your help! You were very patient with us and made sure we understood every step of the way. We never thought we would be able to find our perfect home this soon! We are still in shock how fast you’ve worked and how you were looking out for OUR best interests and not the other way around.

    Thank you for caring in what you do, it really makes a difference when you’re working with someone that really cares and enjoys what they do. Thanks again! We will definitely make sure to send anyone looking into a home your way!

    Gerardo & Brenda Olivares

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