Posted on Wednesday 21 September 2016
Becoming a homeowner, mobile or traditional, is a big step. If you've been renting and are ready to become a mobile homeowner, the last thing you want to hold you back from this dream is your credit score.
Everyone makes financial mistakes, but some can hit your credit score hard. Credit scores have a huge role in most financial decisions you will ever have to make as a Canadian. You would think that being able to afford a home is all that matters when purchasing one. However, this isn't always the case. The issue is that it is difficult to reconcile having a bad credit score and buying a home.
However, bad credit is not permanent; you can overcome it. There are many programs available to help. For example, a Canadian family living in the US may be eligible for USDA financing. You may also qualify for assistance through a state program or HUD. If you reside within Canada, it’s best to look for lenders that work with those living in rural areas.
Purchasing a mobile home in Canada can be challenging even under the best circumstances. Families with dented credit have to go the extra mile to prove their financial ability to pay. They can't afford to make late payments, and their payment plan must be flexible. There are steps one should take to prepare for this big plunge.
First, it is important to remember that while you may be able to get financing with bad credit, it's not a road you should take if you don't have a solid plan to pay back the debt. Poor credit leads to higher interest rates. Before you borrow money, you need to think carefully about the consequences. Also, you want to avoid taking a dip into your emergency fund just to buy a mobile home.
Here are a few steps you should take before purchasing a mobile home.
Another important tip is not to get suckered. Some will prey on vulnerable families looking to buy a mobile home. Keep your bearings, think, and plan clearly before signing anything. You can also take on a side hustle to help you settle your debts quickly.
The only way to get the mobile home you long for is to work painstakingly with an expert on your credit report to make the most of your situation.