soldWant to buy a home, but you’re blacklisted by bad credit? Self-employed but can’t land that traditional home loan because of inconsistent income? This foreclosure infused real estate market has caused lenders to beef up their home loan qualifications making it nearly impossible to obtain a home loan if you‘re less than perfect. Fortunately, real estate pariah’s needn’t lose hope! There are outside the box opportunities available to get financing for your dream home.
FHA to save the day!: More and more interested homebuyers with less than favorable credit are turning to FHA loans. U.S. Federal Housing Administration loans are fortunately not credit score driven. Just be aware that this isn’t a “cure all” loan. Individuals with current or unresolved late payments or trade lines in collection within the past twelve months would not be eligible for this type of loan.
Interested?: For individuals who don’t earn regular income or have unpredictable payments, an interest-only mortgage may be the opportunity they need to procure a home loan. This could be self employed individuals, doctors, teachers, etc. An interest only loan allows you to buy a property when you’re earning high income, but still level out the “paying” field for the times their income isn’t as high.
 Loan/Lean on me: Don’t be afraid to ask family for help! Having a blood or marriage related co-borrower who is credit-qualified can tremendously improve your chances to capture home financing.
Bet your bottom dollar: If all else fails, homebuyers that make a large down payment still has a chance to get traditional financing. For credit boo-boos you can’t put a band-aid on, putting down 25 to 50 percent of the purchase cost can sometimes be the salve to soothe credit cuts for lenders. Keep in mind, that loan applicants with credit dings can be expected to pay up to three percent higher interest rates than other applicants.
If you fall into the irregular income or bad credit category, don’t despair. You still have a chance to become a much sought after homeowner!
Interested in buying a home in the San Diego area? Visit for listings.

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