California Bad Credit Mortgage

California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has the disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of the home appreciation factor. If you're going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?

Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices are high and if you already have poor credit, the fact that you need to be approved for such a high loan amount can be an added difficulty when trying to get a home loan.

However, there is hope. There are so many programs available today to help people with recent bankruptcys, collections and even foreclosures, obtain mortgage financing. There are nationwide mortgage service companies that can either approve you directly or get you in touch with a lender who can approve you.

Here are some suggestions of things you can do to aggressively help yourself get qualified for a mortgage loan in California, with a bad credit history:

1. Pull your credit and review it - Pulling your own credit will not negatively affect your credit score like having someone else pull it will. For a list of the links to the three major credit bureaus, click on the link at the bottom of this article. Look over your credit history and make sure that everything is reporting accurately. Sometimes, something as small as an account being reported as currently being due as opposed to being included in a past bankruptcy can be the difference of 10-15 or more added points to your credit score.

Make sure every account that is closed is reported as being closed. Make sure that every account that was reported in a bankruptcy is reported that way, and not being reported as money still owed. If you have small collection accounts, try to pay them off and then fax confirmation that the account was paid off to the major credit bureaus so that they can adjust your credit report right away. Editing this information on your credit report is easier than ever today because all three major credit bureaus now make it possible to dispute and inaccuracies online. You could pull all three reports, dispute all inaccuracies and be done in less than an hour now. Just a few years ago, it used to take hours or days to fill out all the necessary paperwork.

2. Find a seller who is motivated to pay closing costs or carryback a percentage of the loan - If you find a seller who is really motivated to work with you, that may help you get approved with a lender. If the seller can pay your closing costs, this can free up that money so that you may have a small down payment. If the seller is willing to carryback a percentage of the loan then the loan-to-value may be low enough that the lender may consider that as good as a down payment. If the seller is motivated to work with you, they may be willing to work through a down payment assistance program to help you make a down payment. It is illegal for a seller to give you the down payment for their house, but through down payment assistance programs like Neighborhood Gold and the Nehemiah program, it is totally legal.

3. Borrow or ask for a gift from relatives toward a down payment - After you have financed the house, you can usually take out a 2nd or 3rd mortgage up to the full value of your house, and then you would be able to repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

To view our list of recommended bad credit mortgage lenders who can service California, click on this link: Bad Credit Mortgage Lenders Who Service California.

Here is the link for the list of the 3 Major Credit Bureaus: 3 Major Credit Bureau's Home Pages

Written by Carrie Reeder, Owner of http://www.abcloanguide.com. Carrie's website is an informational mortgage loan website. Her website has articles and a list of recommended mortgage lenders for people with low credit scores.

---

Tips For First Home Buyers On Getting Home Loans

Buying your first home will likely be the biggest and... Read More

Some of the Available Loan Types

There are many mortgage products available on the market today.... Read More

Which is Better? Fixed-Rate or Adjustable-Rate Mortgages

The answer depends on several factors including your financial situation.... Read More

5 Home Buying Essentials

Purchasing a home involves certain important, even essential, steps that... Read More

VA Loans, A Gift from Uncle Sam

Uncle Sam has a gift for the men and women... Read More

Adjustable vs Fixed Rate Mortgages

Mortgage rates can either be fixed for the duration of... Read More

Mortgage Questions to Ask Your Lender

Buying and financing a home today can be overwhelming. Here... Read More

Reverse Mortgage Offers Fresh Approach To Income From Real Estate

If you owe 40 percent or less of your original... Read More

Making Sense of Mortgage Speak

Applying for a home loan can be overwhelming. You will... Read More

How To Get The Best Home Equity Loan

Are you wondering how to get the best Home Equity... Read More

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending... Read More

Good FICO Credit Score? Tips to Getting the Most Out of Your Home Mortgage Loan With Good Credit

Sometimes so much is talked about how to solve the... Read More

Five Things Never To Tell Your Mortgage Lender When Facing Foreclosure

1. Never discuss your household finances over the phone with... Read More

What On Earth are Home Equity Loans?

Home equity loans are one of the most common types... Read More

Commercially Viable Commercial Mortgages

Commercial mortgages are similar to residential mortgages. Usually taken by... Read More

Online Mortgages in 5 Easy Steps!

We're all entitled to the opportunities and benefits of home... Read More

How to Save Money by Using an Independent Commercial Mortgage Broker

Being a creature of habit can cost you plenty when... Read More

Mortgage Cycling May Be Your Best Bet For Equity Buildup and Investment Real Estate

Mortgage cycling is a system that relies on solid budgeting,... Read More

Should You Get an Interest-only Home Mortgage?

Before you consider taking out an interest-only mortgage, you should... Read More

Mortgage Glossary of Terms

A brief list of some of the most common Mortgage... Read More

Doing a California Refinance Online

Californians are passionate people. I know. I have lived in... Read More

Mortgage Debt Elimination

The prospect of mortgage debt elimination is something that many... Read More

Florida Refinance - Refinancing in Florida

The decision to buy a home in Florida can be... Read More

6 Helpful Mortgage Tips

Here are some mortgage tips that can help you obtain... Read More

Is It Time To Buy A House?

At some point as you're writing out your rent check,... Read More

Home Loans: What You Should Know!

Finding home loans can be a daunting task, whether you're... Read More

Fees Paid To Brokers By Mortgage Lenders Are Far Too High

Procuration fees paid by some sub-prime lenders are too high.Fact.There... Read More

Repayment Remortgages is The Cure For Outdated Endowment Policy

If bulls and the bears of the stock market have... Read More

Mortgage Tips For The Frantic

It is a curious fact of human nature that people... Read More

Your Mortgage Rate Compare and Save

When trying to obtain the best mortgage rate compare offers... Read More

Finding the Best Home Improvement Loans

When the time comes to do work around the house,... Read More

Decision Time: Home Equity Loan or Home Equity Line of Credit?

Home equity loans and home equity lines of credit continue... Read More