Acceptable Credit - Most homebuyers have encountered some form of bad credit. The question is how good does your credit have to be to get a home loan? Lenders are far more understanding that one might think and credit can be repaired far quicker than most imagine.

If a prospective borrower has had good credit for the last 24 months, most lenders will find a way to make a loan given sufficient income and enough downpayment. A late credit card payment or two within the past two years can usually be explained away through an explanation letter.

If you are looking to get into a home and have a tight month make sure that you pay your bills on time. If you have to make a late payment do not let it be a credit card, home mortgage, car loan or other types of credit. Utilities typically do not report late payments so if you have to make a decision on who to pay, pay the creditor that will not report your payment late.

If you have had credit problems beyond 24 months, lenders will want to know why so they can be assured that it will not happen again. Some types of credit blemishes that might haunt you beyond 24 months are judgments or bankruptcy. However, if you have either, do not throw in the towel, seek the advice of a qualified mortgage lender.

Lack of credit may worry some, but under certain lending guidelines it cannot prevent you from getting certain types of loans. There are also loans that allow borrowers with large down payments to get around some qualifications of income and/or credit. Contact a qualified lender to have your exact case reviewed.