Bad credit home purchase

Dreaming about one's own space instead of paying a landlord is the hope most Americans have, even if it is a bad credit home purchase. The first place to start is knowing one's own credit score. One of the three major borrowing score reporting companies can be accessed online for securing a credit score and then a first assessment needs to be made, so unless there is a close relative in the family that is a bank president, these financial institutions do not look at a person with a credit score under 640. This is a fairly hard and fast template to prescreen applicants for any kind of loan. However, even if a person does have a score above 640, the debt to income ratio is the other hurdle one must face. A bank does not want a person or a couple to have more than 40% of their monthly income devoted to loan repayments. And if a person is renting at the moment and is trying to buy a residence, then the ratio has to be around 20% so that the mortgage only takes it to 40%.