Home > Parenting > Bad ParentingOptions For People Seeking A Home Loan With Bad Credit
Posted by nick_niesen in Home on October 29th Terrell Suggs Shirt , 2010

Home Loan Options for Buyers with Bad Credit

If you haven聮t attempted to obtain a mortgage, say since the 1990聮s you may be surprised to find that the standards for lending have undergone a significant change. Where it was once virtually impossible to get a home loan if your credit wasn聮t spotless, it is now a distinct possibility. These bad credit or sub prime home loans come at a stiff price to the borrower though and may, in some cases, not be worth the eventual price that will be paid.

A bad credit home loan will require a larger down payment and will charge a much higher interest rate. What this means to the borrower is that over the life of the loan they may purchase the home several times over, paying as much as triple what a prime loan candidate would. At the moment the average interest rate is 6% for a 30 year fixed rate home loan. For bad credit the rates would be in the area of 10% with the same terms. A $100,000 dollar loan at 6% interest and 100% financing would ultimately cost the borrower a little over $215,000. The same loan at 10% interest would cost an additional $100,000, in other words, another house. Not only is the overall payment much higher but also the difference in monthly payments is nearly $300. Imagine the difference $300 can make in your family budget. My point is that it may be in your best interest to work on repairing your credit before obtaining financing.

This brings me to my next suggestion. Perhaps it would be a good idea to look into a lease option or contract rather than obtaining traditional financing for your home loan. This will allow a portion of your payment, plus the option fee to go towards your down payment at the end of your designated option and allow you the time to work on your credit. It only takes a consistent effort for 6 months with no delinquencies to dramatically improve your credit score. I聮m not saying this will fix your credit completely, but lenders look at the effort and a lease option traditionally gives you 2-5 years to get the financing you would need for your home as well as a steady escrow account to go towards your down payment (another thing lenders like to see).

Remember that while home loans are available to those with bad credit, they aren聮t necessarily good for you as the buyer. They come with a very high price, especially if your finances are stretched thin to begin with. If you聮re currently living in an apartment and looking at buying a home, you have to keep in mind that certain expenses will be greater in a home and some expenses that are covered by apartment communities (sometimes water, gas, and cable) these will be your responsibility in a home. So you need to have a budget in place that you can live with. If you don聮t allow money in your budget for clothes, medicine, time off work, and occasional entertainment and you are stretched thin by your potential budget it probably isn聮t a good time for you to buy a home. Also you need to have savings to cover emergencies. The problem is that most people who have bad or poor credit don聮t have the disposable money or the savings (if they did you would think that they would not have bad credit).

So please be careful that you don聮t get in over your head financially in pursuit of the American dream of home ownership. You could very well find yourself drowning in your own debt without any sort of safety net. You could lose your home if you aren聮t careful or find yourself in a situation where you must sell your home and bail out of your financial trouble.

BEIJING, April 29 (Xinhua) -- Does the man dream that he is a butterfly or is the butterfly dreaming that he is a man: Can we really tell our dreams from reality?

This question, asked by a netizen on China's most popular microblog site Weibo on Thursday, was directed at the official account of world-renowned British theoretical physicist Stephen Hawking.

Hawking replied, "We don't or perhaps can't."

The question was discussed by influential ancient Chinese philosopher Zhuangzi, who was known for his philosophy of skepticism. It was Zhuangzi who had dreamed of being a butterfly, or perhaps it was the butterfly who dreamed he was Zhuangzi. Either way, it has been the starting point for discussions on reality, self, illusions and more for over 2,000 years.

In his fourth posting on the microblog, Hawking, who has 3.6 million followers on Weibo -- more than the population of Wales -- selected the question from comments left on his previous updates.

"Zhuangzi dreamed of being a butterfly -- perhaps because he was a man who loved freedom," he said.

Hawking said, in his case, he might dream of the universe and wonder if the universe dreamed of him, "but we humans just don't and perhaps can't know if we are living in our dreams or reality, at least not until we start to understand more about consciousness and the universe."

The era in which Zhuangzi lived is considered by many Chinese thinkers to be a time "when a hundred schools of thought contended."

Chinese philosophers argue that Dao (the Way), from which Daoism gets its name, is the most indefinable of them all.

The Way of the universe is change: Night into day, joy into sorrow, life into death. Nothing is fixed, nothing definable. Moreover, everything is connected. No one knows where the Way leads.

Over 40,000 web users had commented on or forwarded the post within 24 hours of it being published. One follower said Hawking's answer was "a historic conversation."

Since Hawking opened his Sina Weibo account on April 12, his four posts have been forwarded 572,000 times, received 620,000 comments and been liked by over two million users.

In a previous post, Hawking introduced his Chinese followers to his lat. Odell Beckham Jr Jersey   Myles Jack Jersey   Authentic Mitchell Trubisky Jersey   Minkah Fitzpatrick Womens Jersey   Michael Thomas Womens Jersey   Le'Veon Bell Womens Jersey   Leighton Vander Esch Youth Jersey   Lamar Jackson Kids Jersey   Khalil Mack Kids Jersey   Kareem Hunt Chiefs Jersey