Bad Credit Home Loans – First Time Buyers Seeking Low FHA Mortgage Rates

There are many first time home buyers that are seeking low FHA mortgage rates. Unfortunately, many of these borrowers do not have a significant income nor do they have a low level of debt. This makes them prime candidates to take out a bad credit home loan which is exactly what mortgage lenders do not want.


If you are a first time home buyer and your debt to income ratio is above 50% you will probably be taking out some type of bad credit home loan. Even though you may not have extremely bad credit you have too much debt compared to the money you are making. With this being the case you need to work to lower your overall debt load.

At the present time 30 year fixed FHA mortgage rates are very close to all-time lows. Most mortgage lenders are quoting FHA 30 year fixed rates below 5% for good credit borrowers. If you have made strong financial decisions in the past and you have a debt to income ratio that is below 50% you will benefit from this low interest-rate environment.

Make sure to do your research before jumping into the home buying process. There are many first time home buyers that feel that they should qualify for low mortgage rates but they do not understand the requirements. Do not get your hopes up if you have a high debt to income ratio and a very bad credit score.

Author: Heather Best