Buying a Home in Hawaii with Bad Credit: Is it good or bad?

Buying a Home in Hawaii with Bad Credit: Is it good or bad

?

Cast aside your worries and fears for with a bad credit or a bankruptcy filed in one or two of your bank accounts do not mean you're banned from buying a home. Buying a home with bad credit is actually still plausible. That is, even when you have bad credit, it doesn't incapacitate you to buy a home. There is one drawback, however, you may have to pay higher than what a loaner with good credits does.

There is a waiting period after you have filed for foreclosure or bankruptcy. It lasts for about 7 years. Surely, you can avail of a loan from banks and other loaning organizations to get your dream house but be aware that they usually would require you a 20 to 35% down payment. Other than the high rate in the down payment to be made, the interest rate would also be really high and the terms of the loan may just not at all be favorable to you. This is to be expected when you are buying a home with bad credit.

There are ways to get through these hurdles, of course. One is to find a way to enhance your qualifications for obtaining a loan by getting a major credit card. Getting a credit is actually easy after bankruptcy is filed because: (1) a filed bankruptcy offers you a "fresh start," "a new beginning"; (2) the money lender would already know that you have no debt acquired; and (3) filing bankruptcy would be impossible for you to make in another 7 years.

To get through these hurdles, you have to prove to others that you have steady employment on a job for at most two years and that you earn a regular salary or wage (this cannot be applied to the self-employed) and most especially, you continuously pay your bills on time and do not fall behind on the payment schedules.

Other than proving yourself to loaners and sellers of homes that you can do all these, put in mind, too, that your FICO scores can affect the interest rates the loaners would give you. If you have a good FICO score, the interest rate that loaners would give would not go beyond 7.5% and so on. Compared to those with sparkling credit marks, you're only 2.3% away from the 5.875% interest rate that loaners offer them. With that small difference, you can already go buying yourself a home even with bad credit.

There is also an alternative offered for those who want to buy themselves a home even with a bad credit. If you do not want to buy in this situation with the help of the banks in Hawaii, then there are always land contracts offered by the sellers. They make buying a home with bad credits highly plausible and more cost effective because: (1) they do not require qualifying; (2) has lower interest rates compare to the banks'; (3) terms, conditions, and down payments are much more flexible; and finally (4) can seal the deal really quick. Buying a home in Hawaii with bad credits through land contracts from sellers is indeed cost-effective.

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