FAQs Bad Credit Home Loans in Pennsylvania, PA
October 11, 2011
Author: Allison K.Watkins
If you have a bad credit score and want to own a dream house, you can opt for a bad credit home loan in Pennsylvania. Before opting for this kind of bad credit loan, you should do a bit of research and opt for a reliable lender who will assess your credit score, credit report, debt-to-income ratio and employment history. The interest rates for bad credit loans are higher than those for normal loans. This increase in interest rate is due to higher risk involved in giving loans to people with bad credit. You can change this mindset among the lenders by making your monthly payments regularly and on time.
FAQs about Bad Credit Home Loans in Pennsylvania
Some common questions that are asked about bad credit home loans or bankruptcy are:
- What types of home loans are available for those with a bad credit score?
You can opt for bad credit home loans or poor credit home loans if you have an unsatisfactory credit score or are on the verge of bankruptcy, but still want to own a home or want to renovate it.
- How long does it take to get my application for bad credit loan approved?
It usually takes about 48 hours to get a bad credit home loan approved if you have the proper documents.
- Can you help people who have had bankruptcies?
Programs are available to help individuals who have had bankruptcies.
- Can I become a homebuyer even if I have a bad credit score, and do not have enough money for a down-payment?
You can get a bad credit home loan by contacting one of the HUD-funded housing counseling agencies in Pennsylvania. You can also contact your local government to see if there are any local home-buying programs suitable for you.
- What can be done to improve my credit score?
You should make active efforts to improve your credit score by reducing your current debt and keeping your credit card balance under control. If you want to opt for a bad credit home loan in Pennsylvania, you should know the rates of interest you are likely to incur.
- What are the costs involved in getting a bad credit home loan in Pennsylvania?
The costs involved in obtaining a bad credit loan here can vary; therefore you should search for the lender who offers the best deal, along with the most feasible length of the loan. It can include a 3/27 home loan or a 2/28 home loan.
- Will the interest rate be the same for all bad credit loans offered by various lenders?
There are variations in interest rates and terms offered by sub-prime lenders so you should do adequate research, contact several lenders and analyze their terms.
- What would be the prepayment penalty on the bad credit loan in Pennsylvania?
You can get these details from your credit lender. Generally however you can opt for a six-month prepayment penalty option. If you choose a heavy prepayment penalty you could end up jeopardizing your refinance plans.
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