Traditionally, home loans have been awarded to people based on their credit worthiness. However, in recent times lenders have realized that not just people with formal employment are the ones who deserve loans. Current economic situations have changed the perception of bad credit altogether. In essence, proving your income has become a rather tricky affair, especially for people outside the formal sector. Therefore lenders have become more enlightened and at the moment they are offering home loans based on wages rather than credit. If you are in need o a home loan, then you might be happy to hear that it is in fact possible for you to get one.

The question of many people’s minds is how do banks assess your income if it is subject to change every week, or month? Well, what actually happens is that you present a number of recent pay slips to your lender, who then makes an assessment basing on the pattern with which you are earning. More often than not, the lender will use the slip with the least amount in wages. The flip side of this kind of assessment, however, is that it often means that the lender’s assessment of your income will always be lower that your actual income.

More and more lenders have been drawn into this market in recent times. Part of the reason is because they have learnt to appreciate the difficulty in proving one’s income given the changing economic structures today. Furthermore, they have realized that credit worthiness is is not all the proof they need to show that someone will be able and willing to pay back their home loans. After all, they have the home as security too.

So if you are one of those people with bad credit, just walk to your nearest bank and ask about home loans. Many banks will be more than happy to help.