Enough said, it is much more comfortable and less hassle to own your own home. Giving someone else $700 plus a month, in addition to your other bills seems crazy. But if you own a home, essentially you are paying yourself that $700 plus a month in equity. Such a beautiful thing.

But getting a home loan with lousy credit is hard, especially when you are on your own. It can be difficult to save money for a down payment when you have rent and bills to pay. A savings account with good interest rates may take a long time but it is still a good idea. You have to save your money, and find ways to earn extra money for the purpose of saving.

The first thing you need to do, along with saving money, is try and do things to make your credit better. Pay your debtors, open accounts and pay them on time. What makes you think if you do get a loan you are going to pay? You did not pay your previous bills and that is why you have lousy credit.

Why do home seekers with very bad credit get 100% loans? These new home buyers then can either not afford the mortgage or spend their money in other places neglecting the house payment. The government has this policy called foreclosure. They come and take your home and kick you out of it for failure to comply with the payment policy you signed. Of course you have right of redemption but how often does that work in your favor? Reap what you sow.

Save your money and make sure you have savings to fall back on when you decide to make a down payment on a house. Talk with several lenders and find out the different financing and options you have. Research Fannie Mae and Freddie Mac. Pay your bills on time, get encouragement from friends and family, do not spend beyond your means and you should not have lousy credit anymore and you will have a great home with a loan you can pay on time.

Learn more about this author, Sheri Partain.
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