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It’s the American Dream: home ownership, but buying a house with bad credit can be a real challenge. Lenders can’t be lumped into one box and their decision on whether you “qualify” for home ownership isn’t black or white ---- it’s a shade of gray. Mortgage lenders all have different attitudes on buying a house with bad credit and your job is to find the one who will be able to help you. It won’t be easy, but it’s possible.
There have been people who were not only successful in buying a home with bad credit, but they also had a discharged bankruptcy on their credit report. How did they do it? They were able to find a lender who believed they were now able to handle the monthly payment, even after all their past financial troubles.
Lenders seem to fit to fit in two basic categories: the lender who now believes because a prospective buyer has only the most basic of bills to pay, he is a good credit risk. On the other hand, some lenders think that because the prospective buyer has filed for bankruptcy in the past, he is not now financially responsible, which is not always true.
There's light at the end of the bad credit tunnel, you just need to find it.