Discover how to buy a house in spite of bad credit

• February 13, 2017

Are you facing financial difficulties ? Even with bad credit, you can still buy a house. At Guardian Financing, we believe that each problem has a solution. This is why we are convinced that with appropriate resources and consistent efforts, you’ll be able to buy a house despite bad credit. This is how you can manage to do so:

Wait for a few years

Often, lenders will not approve your request if you’ve had a hard time repaying your debts through previous years. It is now time to undertake your financial health and take this opportunity to save money and show the bank your reliability. You can do so by having a stable job and making your payments for small debts on time for at least 2 years. This way, you’ll start to free yourself from your bad debt.

Accept a higher interest rate

The higher the risk with a bad credit mortgage, the higher the interest rate. Even if you can make small payments each month, your house will be way more expensive. You may also have to provide more significant seed money. However, this can be a good solution if you need a house fast, for instance when you want to start a family. Indeed, you can modify the interest rate after a number of years, as per the agreement with your lender.

Find a co-borrower

You’ll be more likely to buy a house in spite of your bad credit if you find a co-borrower. It can be a friend, a family member or a spouse, provided this person has an excellent credit rating. The lender will be more inclined to accept your request because he/she will be more confident about the financial health of your co-borrower. Your co-borrower will be responsible for the entire debt, should you fail to face your obligations. However, he/she cannot become the owner of the house. Make sure this person fully understands his/her responsibility before accepting to help you.

Guardian Financing is certain that you’ll find the means to buy your dream home. If you want to benefit from a personalized service, get in touch with our private mortgage lending team and contact us as of now throughout an online request. No matter your situation, there is a solution!