Fortune not only favors the bold but also those who failed to do well in their credit score! While there is no denying that availing a good sum as a home loan largely depends on your FICO score, one need not stop their American dream whatsoever! Here are some useful tips to avail home loans even if you hold a bad credit:

Ensure that you do not have any outstanding or delay in payment for the last 12 months.

Be very careful with nonpayment of small bills. There could be some $50 bills towards a plumbing job that you availed six months back. You might have either overseen it or ignored it! Trust us – you would be taken by a great surprise when you see your credit score report. The $50 bill will continue to act against you and will make your home loan dream far fetched. Every single bill has to be paid and that too on time, should you require home loan!

Maintain a good debt to income ratio. To just put this across, it is the ratio between how much you earn and how much you pay in terms of bills, loans and your personal monthly expenses. The more loans you have, the more the debt to income ratio will be. This means that that the chances of getting a new home loan is weak. You might think you are smart enough to refinance your existing mortgage, but that might backfire if you end up having more liability than what your earn.

Meet up with small credit mortgage lenders and understand the whole process. There are quite a lot of them in the market. They run several credit home loan programs that give new ray of hope to those with American dreams.