Credit-challenged borrowers discover best home financing

Advantages abound with mortgage brokers, lease options

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Now that you've checked your credit reports and FICO scores from the three nationwide credit bureaus, it's time to consider the best ways to finance your house or condo purchase. Let's discuss specific home-purchase finance methods whether or not you have good credit. 1. GET PRE-APPROVED IN WRITING FOR A HOME LOAN. Unless your FICO score is below 600, if you have adequate income you can probably get a home mortgage. FHA and VA home loans are usually the easiest to obtain with the most liberal qualification rules. Purchase Bob Bruss reports online. Traditionally, mortgage lenders wouldn't approve home loans if the monthly housing payment exceeds 28 percent to 33 percent of monthly household income. But in recent years, lenders have greatly liberalized their standards. I've seen home loans approved recently that take up to 40 percent, and even 50 percent, of monthly household income if the borrower(s) has a high FICO score, stable income, and little or no other debt. Today, there is ...