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Bad credit mortgages
Guidelines and tightened up very much since the subprime era of mortgage lending. Nowadays if your credit score isn't in the 620 plus range, you will find it very difficult to qualify for an FHA loan. FHA loans offer 3.5% downpayment mortgages for the first time homebuyer as well as the seasoned homebuyer. There are only a few lenders throughout the country that work with lower credit scores. The lowest I have seen is 580. If by chance your score is in this area, it is only in your interest to try to see if you can get your credit scores higher. There are credit repair agencies that will help you with this.
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If you are short on tradelines, (i.e. next to no credit lines established) some of our lenders allow "alternative trade lines" to be added to your credit report as a supplement for qualifying on a loan program. These tradelines may consist of other types of monthly bills which you have paid on time with such as a utility bill, a phone bill, car insurance, or other similar monthly obligation. The payment history on these is normally documented with 12 months cancelled checks.
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