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Having good credit wont get you a mortgage by itself, but it definitely helps. A good credit score can result in a lower interest rate and better loan terms, while poor credit can lead to a higher interest rate for a mortgage.

But its not impossible to obtain a home loan if you have poor credit and are working to improve it. Here are some options:

Wait a Few Months

Work on improving your credit score for a few months, and then try to get a home loan. The wait may be worth it and could boost your credit score just enough to qualify for a loan.

There are several ways to improve a credit score. Reducing debt is the best way, so do all you can to pay off your credit card bills. If you have a history of late payments, or just a few of them, stop that bad habit and start paying all of your bills on time.

Also, check your credit reports for errors and fix them, and dont apply for new credit cards when shopping for a home loan.

FHA Loan

A loan backed by the Fair Housing Administration (FHA) is usually the easiest type of mortgage loan to qualify for.

Its aimed at first-time homebuyers and requires a low down payment of 3.5 percent for people with credit that isnt very high. Borrowers with credit scores as low as 500 can qualify for FHA loans.

However, FHA loans do have an additional expense”you’re required to purchase mortgage insurance. This protects the lender if you default on the loan.

Are You a Veteran?

A Veterans Affairs mortgage, or VA loan, is a low-cost home loan for veterans. It doesnt require a down payment in most cases, has lower rates than conventional loans, and doesnt require paying a monthly mortgage insurance premium, among other benefits.

Most VA-approved lenders require a credit score of at least 620, according to the Veterans United Network.

Have a Higher Down Payment

The interest rate a lender offers on a mortgage is partly based on risk. A poor credit score can mean youre a higher risk for not repaying the loan than someone with a high score.

To offset some of that risk and qualify for a lower interest rate, you can make a higher down payment. Putting 20 percent down instead of 5 percent may get you a better rate on a loan.

Whatever loan option you choose for a home purchase when trying to improve your credit, you should continue working to boost your credit score after buying a home. When it gets high enough, it may be worthwhile to refinance your home loan.

Published with permission from RISMedia.

A mortgage payment can easily be the biggest bill in a monthly budget. Coming up with that money can be easy in some months and more difficult in others. Turning those difficult months into easier ones is possible with a few tactics.

Here are five hacks to help make paying your mortgage a little easier each month:

Get a side job
Just earning $500 extra a month ” or $125 per week ” can make paying a mortgage easier. To do this, get a side job for one or two hours per day at a gig you enjoy.

Consider dog walking, house sitting, driving for Uber, delivering meals or teaching a class at your local community center. Set each paycheck aside for your mortgage bill.

Rent out a room
There are several options for renting a room and making some money on the side. You can be a full-time, live-in landlord and rent out a room to a tenant by the month.

Airbnb allows users to rent rooms on their schedule ” one day at a time, a weekend, week or longer. Or rent your entire house for a few weeks while youre away on vacation.

Rent or sell your stuff
From your car, bike, surfboard and other gear, you can make some extra money by renting out your stuff when its idle.

If you want to get rid of something youre not using, then sell your unused books, bike, clothes, furniture and tools, among many other things, on sites such as eBay, Craigslist, Amazon and used book websites.

Use a work bonus or tax refund
A bonus at work or a tax refund can seem like found money, and its easy to spend it on a splurge such as a vacation.

Another use it to put it toward your mortgage for a month, saving you a payment and giving you a month of relaxing by not having to pull money from your regular budget to make a house payment. It can free up your other funds to invest or put aside in an emergency fund for a rainy day.

Pay down the principal
The above tips are meant to help you come up with some extra money so that your monthly mortgage payment is easier. While that can be good in the short term, you can also use the extra money to reach the long-term goal of paying off your home loan earlier. If your loan doesnt have a penalty for prepayment, then add to what you pay each month to your mortgage bill, and be sure to specify that the extra amount goes toward the principal.

It will help you pay off your mortgage faster and will save you thousands of dollars in interest over the life of the loan.

Hope you found these tips helpful! Contact me for more insights and info.

Published with permission from RISMedia.

Air quality has a direct impact on our health, both in and outside of our homes. While much is being done to improve the air outdoors, maintaining a healthy level of air quality inside is evenly important.

A range of triggers can lower indoor air quality, including carpets, chemical cleaners, heat sources and humidity. Build-up of these pollutants may result in Sick House Syndrome, which poses health risks to residents if not addressed. Airborne lead particles and radon are especially harmful.

Opening windows can significantlyimprove the quality of the air in the home, but in many households, doing so is just one of several necessary steps. A checklist:

1. Clean your home frequently, preferably with natural or non-toxic cleaners, a HEPA-filter vacuum and a mop. Regular cleaning eliminates dust, which could be contaminated withlead if the home was built prior to 1978.
2. Aim for less than 50 percent humidity inside the home; a higher percentage can lead to mold. A hygrometer can help determine the humidity level. Use an exhaust fan while bathing, cooking or using the dishwasher. Invest in a dehumidifier, if necessary.
3. Take care not to disturb lead-painted surfaces, especially if remodeling the home. If the paint is peeling, consult a lead removal specialist as soon as possible.
4. Test for radon. Most hardware stores carry do-it-yourself testing kits, and some utility companies offer the service free of charge. A qualified professional can conduct a longer-term test to determine radon levels at varying times throughout the year. He or she may recommend installing a radon mitigation system.
5. Dispose of paint, gasoline or any other chemicals at a certified hazardous waste disposal center. Visit search.earth911.com to locate a local facility. For future paint projects, purchase products labeled low VOC.
6. Replace the furnace filter every three months to reduce the amount of airborne dust circulating through the home.
7. Remove wall-to-wall carpeting, if possible”it traps particles that can exacerbate allergy and asthma symptoms, and may even contain formaldehyde, depending on the manufacturer. (Pressed wood materials, such as cabinets and furniture, may also release formaldehyde.)
8. Place plants where possible. House plants filter out airborne toxins, including ammonia and benzene, that can be detrimental to health. To reap the most benefits, use these NASA-approved species.
9. Remove shoes when entering the home, and place a floor mat at each entrance to deter any pollutants tracked in by guests. Dirt and pesticides brought in from outside can become airborne inside the home.
10. Insist the home remain smoke-free, if possible. Secondhand cigarette smoke, which lingers long after the smoker leaves, can have devastating effects on members of the household, including children and pets.

Published with permission from RISMedia.

Many hopeful homeowners may get confused by the terms modular and manufactured when it comes to property types. And while modular and manufactured homes tend to get used interchangeably, they are actually very different. Technically, both types of homes could be considered manufactured, since they are both built in a factory or manufacturing facility, but when it comes to manufactured and modular homes, its important to know the difference, especially when talking about financing.

Manufactured Homes

Constructed completely offsite and transported to their location, manufactured homes are also often called mobile homes or trailers. While they can come in a handful of different sizes, the most common are single- or double-wide. They can be located in a trailer community or on owned land, but manufactured homes are not on permanent foundations.

Lower in price, manufactured homes typically do not appreciate in value at the same rate as other types of homes. Because of this, it can be very challenging to find a mortgage lender who will finance the purchase of a manufactured home.

Modular Homes

Also called prefab homes, modular homes can come in a variety of shapes, sizes, styles and price ranges. Unlike manufactured homes, modular homes have comparable pricing to traditional site-built homes, and are similar in appearance, too. Sometimes modular homes can look exactly like site-built homes, due to the advances in modular construction and the wide variety of building styles that are available today.

Although modular homes can look just like traditional single-family homes, they are actually built in segments and then put together at the home site. Unlike manufactured homes, modular homes are constructed on a permanent foundation and are considered permanent structures.

Modular homes can be very cost effective and construction on them can be very efficient. Modular homes have to adhere to all state and federal building codes and must have the same kind of inspections as a regular site-built home. By contrast, manufactured homes only have to adhere to the standards set forth by the Department of Housing and Urban Development (HUD), which tends to have more lenient rules and regulations.

Finding affordable financing for a modular home purchase or refinance isnt nearly as difficult as it is for manufactured housing, so if you need a mortgage, a modular property is the way to go.

Published with permission from RISMedia.

Tiny homes dont cost much, but they can require a tiny mortgage.

Unless you have $30,000 in cash to buy the average tiny home of 200 square feet, it can be difficult, if not impossible, to get a mortgage on a tiny home. A mortgage requires that a home be placed on a permanent foundation, not a trailer with wheels, as many small homes are.

Most mortgage lenders have minimum loan amounts that are much higher than a tiny home budget. The typical size of a small home seldom exceeds 500 square feet. The average cost is $30,000, though it can range from $10,000 for a build-it-yourself tiny home to $100,000 or more for one from a professional builder. Such small loans may not be worth the risk to lenders.

The good news is that there are other ways to finance a tiny home:

RV Loan
If a tiny home meets the manufacturing and safety requirements to be certified roadworthy by the Recreational Vehicle Industry Association, it may qualify for an RV loan from a bank. The main requirement is that the home be on wheels.

Personal Loan
If a tiny home isnt certified as an RV, or its not on wheels and is on a foundation, then an unsecured personal loan may work best.

This way, the borrower, not the home, is being underwritten through the loan. The tiny home isnt used as collateral, as with a mortgage. A customers credit history and ability to repay will be the basis for loan approval, and they wont have to justify how the money will be used.

However, personal loan rates can be twice as high as 30-year mortgages, though at much shorter terms of up to seven years. That can be good for a tiny-homebuyer, giving them a small loan that they can pay off within several years to then save money for other things down the road.

Traditional Mortgage
If your tiny home is going to be on a permanent foundation, that may be enough to get you in the door at a bank offering a traditional mortgage, despite the small loan amount. Even for a small loan, a bank may consider you if you have good credit and your tiny home meets the local zoning codes and licensing rules. Like an RV loan, the mortgage will be secured by the home, which is key to being able to deduct interest.

With tiny homes becoming more popular, look for more lenders to enter the market. When a need for loans is created in the marketplace, banks often find ways adapt.

Published with permission from RISMedia.