Possibly you have made a car loan and that has been your largest purchase up until now but now you are about to be first-time home buyers the best option is usually an Ontario FHA loan.

FHA loans are directed towards home buyers who are purchasing a home for the first time or the first time within the past five years. The home needs to be purchased as an owner-occupied property which means that the home buyer needs to intend to live in it and needs to occupy it for at least one year. They also need to move into the property within three months. FHA loans are usually more flexible than other types of bad credit loans which means that those in those situations may have more success.

• Find a mortgage lender in Ontario that specializes in FHA loans. FHA loans are a special type of loan and not every lender is well-acquainted with them. Because FHA loans are under government regulation there are certain standards that the lender and the borrower need to meet and the lender can discuss the borrower’s finances upfront with them in order to see whether they will be able to qualify at all. Borrowers who believe they have bad credit may find that they still match the minimum qualifications of the lender.
• Find a mortgage cosigner. Just like no down payment bad credit auto loans a mortgage loan usually works more smoothly with a cosigner. A cosigner with good credit will make it much easier for a person with bad credit to secure an FHA loan. Cosigners can be difficult to secure but they usually make the entire process much better and they can lower the borrower’s interest rate at the same time.
• Improve the credit as much as possible. If the credit score is just below standard the borrower should make all possible attempts to improve their credit score. There are many ways that a borrower can improve their credit score within a short period of time and all these methods should be used during the approval process.
• Decrease debt-to-income ratios. Credit is only one component of the approval process. The other parts of the Ontario approval process are debt-to-income ratios and income amounts. This means that a borrower should begin paying down debt and increasing any available income so that they can present a better financial picture to the lenders. Lenders may be slightly more forgiving of bad credit if the rest of the financial picture is good and if the down payment is higher than necessary. FHA loans usually only require a minor down payment.