Obtaining new home financing got a little tougher for consumers in 2008 after the real estate bubble burst and many mortgage lenders were forced out of business. While there are still many mortgage lenders offering competitive rates and programs many of the subprime lenders have all but disappeared leaving borrowers with troubled credit stranded.
If you find yourself in the position of having bad credit and are in need of a loan to purchase or refinance your current mortgage you should look at an FHA loan. Although some lenders now require credit scores over 580 for FHA financing it is still your best bet to obtain financing.
In both refinance and purchase transactions FHA will borrow up to 97% of the appraised value of the property or sale price. But be aware that in refinance transactions FHA will look at your last 12 month payment history and you can have no 30 day mortgage lates in that time period.
Many borrowers are not aware that there are still Zero Down Payment programs available, but there are. There are some organizations like Ameridream hich will give you the down payment assistance you need to buy a home and not require you to pay back the money.
It is important that when you select your loan officer, that be adept and knowledgable in doing these type of transactions, because they can be tricky for the novice.