Buying a new home when you have severe debt issues and very little cash to spare could be troublesome, and not to mention a burden to you. Thus it is advisable that you seek debt relief measures and debt settlement solutions first before you opt to purchase a new home if you are deeply mired in debt. There are several lenders out there that might offer you deals that could help in terms of debt relief, for instance you could opt for debt consolidation loans. Or you could opt for credit counseling first before you take up any decision with regards to debt elimination, as this move could help you evaluate your financial situation better before you decide on the next step.

One option that you could possibly explore if you are planning to purchase a new home is the Federal Housing Administration (FHA) mortgage loan! This could help you finance the purchase of your home even when you have outstanding debt issues. You could apply for an FHA mortgage loan by finding a lender that is approved and endorsed by the FHA. The FHA would then proceed to analyze and evaluate your credit report. One of its main requirements is that you must have at least one year of punctual, on-time payments on your credit report to be considered for an FHA mortgage loan. You might also have to submit records of your rental payments to the agency before your application is approved.

FHA mortgage loan may not be a form of debt consolidation relief, but nevertheless allows you to explain the negative blemishes on your credit report as you seek financing for your new home. If the FHA finds that your reasons are valid and understandable, you might stand a good chance to obtain approval for your loan application. Even if you are required to provide a down payment for the purchase of the home, the amount that FHA charges as down payment is usually low, about three percent of the total loan amount.

In addition to those seeking home financing while in debt, those who are looking for debt relief freedom should also be aware of their current financial situation before seeking help. Debt consolidation would be the obvious choice if you are seeking debt relief from several different credit accounts. Nevertheless before you hire any debt consolidation agencies to manage your debts for you, it is best that you attend a credit counseling course. Meeting a credit counselor would help you evaluate and analyze your current debt and financial condition. In addition, the counselor would also be able to provide you with important advice on how you can tackle your debt issues with the help of debt consolidation.

If you are looking for help in terms of credit counseling and debt consolidation, the Federal Credit Union might be able to help. The Federal Credit Union is a non-profit body that assists people to eliminate debts and bankruptcies effectively. You could also approach the Consumer Credit Counseling Service (CCCS) for assistance and credit counseling. Other options that you could look at include the Analgamated Credit Counselors, the American Debt Consolidation, the Consolidated Client Services and Credit Solutions of America to name a few. All these firms and bodies could help you through counseling and advice to assist you in your efforts to eliminate debt and achieve debt-free status in the most effective and functional method.

Make use of the above-mentioned solutions to put your debt complications to bed, and allow you to live a fulfilling, debt-free life. All the best!

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Category: Finances
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