Can I Clean Up my Credit Report Enough to Get a Mortgage?
If you are searching through rent to own homes listings, chances are one of your most important goals is to own a home some day. You are not alone! Many people are in the same shoes you are. Renting to own can be a great stepping stone towards becoming a home owner.
In the back of your mind you may be wondering, “Can I really clean up my credit report enough so that I could get a mortgage?” The good news is that given enough time, just about anyone who is serious about owning a home can improve their credit enough so that they can get a mortgage.
Let’s look at some types of things that could stand in your way. If you have unpaid tax liens, you will need to get these paid prior to getting a mortgage. Since tax liens tend to be quite large, this is a major road block for many people. The same goes for judgments. Judgments, regardless of what type, will need to be paid prior to getting a mortgage.
Something you may not know is that if you have defaulted student loans, you will not need to pay them off in full before you can get a home loan. You can simply enter into the student loan rehabilitation program and after 9 consecutive on time payments, your loan will be considered rehabilitated and your status will be brought current. It is important to note that if you currently have a wage garnishment, payments made derived from the garnishment do not count towards your 9 payments.
If you have previously filed bankruptcy, you will need to be at least two years out from your bankruptcy discharge in order to get a mortgage. If you have had a foreclosure, the time goes up to three years. So, make sure if you are in this situation that you give yourself sufficient time.
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