Can I Still Get A Home Mortgage Loan If My Credit Is Bad?

webma · Joined: 16 Aug 2005 Posts: 27 Location: Chico, Ca. USA

Can I Still Get A Home Mortgage Loan If My Credit Is Bad?

Even if you have a less than good credit rating title on your credit history report, you can get a bad credit home mortgage loan. The lower your credit score, the larger would be the down payment required by the lenders. A score less than 600 would require at least a 5% down payment; whereas a score of less than 580 may require about 20% down payment. However, you should be cautious of the lenders terms, because they may ask for close to a 50% down payment on your bad credit home mortgage loan.

However, a larger down payment on the bad credit home mortgage loan is even beneficial at times. This is because a down payment of 20% or more can help you in avoiding private mortgage insurance, and can save you a lot of money in terms of the premium costs on the bad credit home mortgage loan.

To get a bad credit home mortgage loan, you can apply online for the pre-approved loans. By applying for these loans, you can know your budget and can find out how much you can borrow, instead of focusing on whether the bad credit home mortgage loan would be approved or not.

Finally, a very important thing to keep in mind while applying for a bad credit home mortgage loan is that you must fill out the application form correctly. Before submitting the application, you must make sure that all the information provided by you is correct and is spelled correctly. If while processing, your information cannot be matched, then it may lead to a delay in the approval of the application, or sometimes, even in the rejection of the application for your bad credit home mortgage loan.

Haplo · Joined: 20 Jan 2005 Posts: 2406 Location: Springfield, IL

i like the spirit of what you're trying to do, but could we consolidate this all into one? It's basically all about the same thing, just sub-parts.

Also, can get 100% down to a 560 score, 580 score is a lot more likely, and the rest at 600 :) Just so there is a little comparison there :)

chow · Posted: Tue Nov 29, 2005 8:59 pm Post subject:

I can't type, and I flunked spelling, now what was all of that?

Hail, I can get someone with no credit a 75% commercial loan or a 3% FHA (but I give those away)

Can I have the dummie's version of that post again? :roll:

I am blonde, I was born at night. Please explain.

Norman · Joined: 04 Dec 2005 Posts: 5

Bad credit loans are available. They are featured by many lenders. Bad credit can man many things. You can have no credit. You can have a foreclosure. You can have a reposession. You can have a credit score of less than 500. In the past 130 days "bad credit loans" was the 10 most frequently searched phrase on search engines. To those mortgage brokers who are affiliated with lenders who offer "bad credit loans" a bad credit loan means just one thing: our borrower will have to pay a higher rate of interest than a person who has a higher or better credit rating. The lenders set the rates and charge a premium for those with bad credit just as they offer a discount with those with very high credit. Before accepting the fact that you have bad credit analyze your credit report carefully because it may contain errors. There are also ways to legally improve your credit and in some cases you can actually change your status and get out of the bad credit range.

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

i can get you 100% financing down to a 500 score with up to 5k in collections allowed.....

pussycat · Joined: 24 Jan 2005 Posts: 94 Location: Kansas City

Becca,
How can you do that? I require a 580 for 100%. If you can really pull that off, I may have a couple of borrowers for you,

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

i really can do that!!!....we do more of them then anything else...its a fannie product......100% down to a 500 score with 3 % seller assist and up to 5k in collections allowed...and get this...65 DTI alloweed....the only catch becasue it is mostly horrible credit is the PMI is very large...but it is a 30 year fixed product with no pre-pay...so we get them in a settled and work on their credit then we refi them into a no PMI product....

chow · Posted: Thu Apr 20, 2006 1:08 am Post subject:

You can have anything!

As long as you're willing to pay for it. :wink:

mamoore · Joined: 06 Apr 2006 Posts: 18 Location: il

flagstar by any chance? I usually get them approved on a 520 not so much on a 500. ea3 expanded approval.

dsouthr · Joined: 24 Jun 2006 Posts: 15 Location: Columbia SC

You can always go down to a 500 and add a seller second back to 100%CLTV, staple of sub-prime. Make it a real seller 2nd and advise the person holding the second to collect it for 12 mo (with cancelled checks in hand for proof of arm's length payments) & sell the second note for on average .50 on the dollar. Several companies play on the note buying side, I would set the second note rate around 12 (for best sell).

technofy_bank · Joined: 06 Oct 2006 Posts: 4

Yes, obviously you can be approved for home mortgage loan if the credit score is low, but not far below.

There are mortgage lenders who take the risks of offering loans to bad credit loan borrowers.The process will be strict for loan approval as the credit rating is low and if approved then may be with higher interest rates.

Most important point is borrower will be approved for a loan against the home as security and remember there will be strict penalties for late monthly payments.

The loan amount depends on your credit score.If your credit score ranges from 550 - 625 then you may be approved for a loan with the interest rates any where between 5 - 20% and a substantial down payment.

I edited your signature line because it links to another discussion group. We don't mind referrals for a topic, but please don't make other boards part of your signature.

chow