People with a poor credit score can get the home loans if they are ready to get the sub-prime financing. The sub-prime loans would have higher interest rates than the normal rates and that could be a problem to many people. The other way to secure home financing would be to pay a higher down payment and get the conventional mortgages. You could resort to any one of the methods and become a home owner. There are certain requirements to get the best mortgage rates. For example,lenders are going to observe the current debts owed by you to others. If there are too many debts,approval would become slightly harder. Thus reducing the debts and then applying for the home loans would be a great idea. The debt to income ratio reflects your ability to manage the new mortgage loan. This would be used by the lenders to tell whether you would be able to manage the monthly payments or not.Another way of securing the poor credit mortgage loans would be to start doing the credit improvement and then get the mortgages from the conventional lenders. As you might have guessed,the rates will be lower than the sub-prime home loans and this would save a lot of money in the long run. Every borrower can opt for either a adjustable rate mortgage or a fixed rate mortgage. I agree that the adjustable rate home loans have better rates. But that is not going to be permanent. The rates will definitely be changing in the future and there are high chances that the newly adjusted payments would become unaffordable to you. Thus it is much better to get the fixed rate mortgages.
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