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If you think that you have to have perfect credit in order to purchase your dream home, think again. There are a number of loan programs for individuals who have past credit problems, including bankruptcy. While interest rates may be higher for those with less than perfect credit, there are now a variety of mortgage loan programs used to finance the purchase of a new home. Many companies who specialize in lending, such as http://www.NorthstarFinance.us, are familiar with the various loan options and interest rates that can help to make a homeowner's dreams come true.

For example, an FHA (Federal Housing Administration) loan is government backed and the lender is guaranteed to receive their money. FHA loan programs call for a much smaller down payment than conventional loans, which often require a 10-20% down payment on a mortgage loan. New homeowners, people with past credit problems or no credit at all may find it easier to qualify for an FHA loan. Individuals with a previous bankruptcy may be required to provide an explanation as to the events leading up to their bankruptcy, but http://www.NorthstarFinance.us offers a convenient pre-approval and application process that helps the applicant through the loan process very efficiently. In addition, two years of re-established credit is recommended if the debtor received a discharge under chapter 7 bankruptcy. Many lending institutions prefer to see several open credit accounts with a good payment history in the two years prior to applying for a mortgage loan. If the debtor remains in a chapter 13 bankruptcy repayment plan, he/she will have to request permission from the court before attempting to get a mortgage loan.

During the home loan process, the applicant will submit financial information and give permission for the lender to view a copy of their credit report. If the applicant has past credit problems, including bankruptcy, missed or late payments, foreclosures, repossessions, etc., their FICO score will be lower than if none of those circumstances were present. In determining the credit worthiness of the applicant, the lender will look at several factors, including employment history, credit history and debt to income ratio. Depending on the applicants credit, or FICO, score, the lending institution may or may not grant the mortgage loan. If a loan is granted, the interest rates may be higher than those for an individual with perfect credit.

In addition to mortgage loans, there are a number of other programs available to those with past credit problems. Debt consolidation or home equity loans are offered as a way to help the applicant regain control over their current debt. For example, if an individual is overwhelmed in credit card debt, he/she has the option of applying for a debt consolidation loan. This type of program allows the consumer to take out a loan to pay off the credit cards in exchange for one convenient monthly payments which, in many cases, is lower than all of the credit card payments combined. A home equity loan allows the applicant to refinance against the equity that he/she currently has in their home. A qualified lender, such as http://www.NorthstarFinance.us will be able to explain the benefits and risks for those who decide to refinance their home.

Anyone that has had credit problems in the past knows how difficult it can be to rebuild credit, but it is a comfort to know that there are loan programs out there for individuals with less than perfect credit. More and more lending institutions, such as http://www.NorthstarFinance.us, are becoming dedicated to helping potential homeowners through the entire lending process, helping to get the lowest interest rates possible and explaining the various loan programs available to fit their needs.

Located in Florida, http://www.NorthstarFinance.us is a mortgage company specializing in various loan programs, including mortgage, debt consolidation, home equity lines of credit, etc.