Things You Will Need
Proof of income.
Step 1Determine your target goal. Your goal must be within reach and reasonable. Determine how much cash you need and you will have your target goal. Once you have a number, reduce that number to a minimum that you must have.
Step 2Show steady employment. You should have 1 to 3 years of steady employment. You must be able to show proof of at least 1 year of employment. This will help your chances of getting a loan. It's still possible to get a loan without steady employment, but not likely.
Step 3Try to save for a down payment of at least 10%. With a down payment of around 8 to 10 percent, you establish a lot of trust with the lender. They know you at least have the down payment and are prepared to cover 1/10 of the cost. If you can't come up with 10 percent, try to at least save for 5 percent.
Step 4Apply for a government grant. If you qualify, the government will pay for your down-payment on your first house. You must be within the poverty guidelines. You must show proof of income up to six months. Apply at the HUD.gov website.
Step 5Apply to a Hard-money lender. Hard-money lenders are lenders that specialise in dealing with people who do not have good credit or have filed bankruptcy at some point. You typically have to put down 25 to 30 percent interest to get this type of loan, but it is a last resort for those with bad credit.
Step 6Find a loan specialist. Make sure to find a loan specialist that specialises in bad credit situations. Usually, they can get you a loan when no-one else can. Find someone you can trust and work with them to fill out the necessary forms and applications.
Tips & WarningsBe aware of suspicious lenders with unreasonable terms. Watch out for unusually low interest rates.