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Do you reside in California and have bad credit but need a loan to make a big purchase? If so then you are in the right place. As the years come and go the average number of people who make one or two simple mistakes jeopardizing their credit score increases consistently. That one mistake will affect your credit score for up to seven years thus making it hard for you to be approved for a loan. It can even prevent you from obtaining your dream job. However, bad credit should not stop anyone from seeking help because there are many ways to obtain a loan with bad credit.

First thing’s First

It is very important to try to start paying offer any debt owed to allow yourself a better shot at getting the loan you need. Having a solid on-time credit payment history increases your chances being approved for the loan you desire. The higher your credit score is, it is likely you will get a loan with lower interest rates, better terms and lower repayment plans. Below is a list of loans that are available to those in California with bad credit!

Need a loan to get the house you’ve been dreaming of? Think Federal Housing Administration (FHA) Loans!

Federal Housing Administration (FHA) Loans is one of the most popular programs sought out by those who have bad credit. FHA loans are backed by a government organization that is devoted to helping Americans get adequate housing even if they have bad credit. When it comes to applying for FHA loans, it is vital to understand that the borrower won’t receive the loan from this company. FHA was created to help those with bad credit but protect the lender against the risks involved in offering loans to those with bad credit.

Depending on the lender the borrower is referring to, FHA loans will vary. Since the borrower is labeled a risk, some lenders will be stricter than other lenders. Borrowers will also be required to put down a payment of 3.5% and there will be a limit on how much can be borrowed which is based on the cost of property, the borrowers income as well as the state. Borrowers are also required to for mortgage insurance, which are upfront, and yearly payments. The upfront payment is 1.75% of the total loan and the annual payments range from .045% and 1.35%. The short the loan the lower the insurance payments will be.

Unsecured Loans that reports to major credit reporting companies.

If you aren’t into purchasing a home right off the bat but need a loan to help slowly build your credit, the apply for an unsecured loan. It is very important to use to the best of your ability because it is quite easy to get into trouble with these loans for the reason you will be spending more on fees and interested than the actual borrowed amount.

References

How To Get a California Mortgage With Bad Credit

California Lending Options For Borrowers With Bad Credit