I can’t afford to buy a home. Whether you’re afraid that your bad credit will prevent you from being approved for a home loan or you don’t think you can afford a down payment, there is probably a solution for you if you choose the right lender and determine what loan option is best for you.

If I have credit issues, I won’t be able to get a mortgage.

While there are some limitations, getting a mortgage when your FICO score is sub-par isn’t out of the question. Follow the steps below and learn more about how you can improve your chances of being approved for a home loan.

• Fix errors in your credit report • Pay down credit cards with high

balances • Get a co-signer • Seek credit counseling

I’ll need a 20 percent down payment to receive a home loan.

Many people believe that a 20 percent down payment or at least a 10 percent down payment is required in order to purchase a home. While many traditional mortgages require a 20 percent down payment, large down payments aren’t required in order to receive a home loan. Some lenders accept as low as 3.5 percent of the total mortgage as a down payment. If you’re intimidated by the idea of a large down payment cost look into all of New American Funding’s first time home buyer programs options.

Home Improvement Loans are only for people who have homes that

are in bad condition. Home improvement loans aren’t just for essential improvements. There a number of cosmetic and economical updates you can make to a home with a home improvement loan such as: • Interior and exterior painting • Minor kitchen and bath remodels • New flooring • Energy efficiency improvements • Deck, patio and porch additions • Landscape improvements • Washer or dryer upgrades

If I’m pre-qualified, then I’m pre-approved.

Pre-qualification is a lender’s indication of how much you could be eligible to borrow based on the initial information you give. This number is simply an estimate and not a definite promise of how much you will be able to borrow. Preapproval is more definite and indicates the amount the lender is willing to give you a loan based on the information and documentation you provided. You may still need to meet other conditions before receiving your loan at this stage.

I will never be able to own a vacation home.

There are several types of loans available to home owners that are looking to purchase a vacation home or an investment property. Second homes have many benefits: • Increased cash flow thanks to renters • Potential tax benefits • Padding for your investment portfolio New American Funding can work with you to determine what type of investment property loan is best for you.