Excellent Credit is not required to buy a home. Of course, a higher rating will qualify home buyers for a low rate and better Loan programs. Still, buying a home after bankruptcy is easy. Although home loans following a bankruptcy discharge come with high rates, a home purchase is a great way to quickly boost a low credit rating.
Here are a few tips on getting a low credit score mortgage loan.
Sub Prime Mortgage Loan Programs
There are many options available to home buyers with a low credit rating. Credit scores below 680 do not qualify for prime home loans. Hence, these persons will need to speak with a sub prime mortgage broker or lender. Sub prime loans are intended to assist those who cannot obtain traditional mortgage financing. These lenders work with all types of people and credit situations. Furthermore, sub prime lenders have a multitude of different loan options.
Who Qualifies for a Sub Prim Mortgage Loan?
Anyone with a low credit score can get approved for a sub prime mortgage loan. However, there are certain limitations. Many lenders will not approve a mortgage loan if the borrower's credit score is below 500. In this instance, the risks are too high. Home buyers who fall into this group may consider improving their credit before applying for a home loan.
Having a chapter 7 bankruptcy, collection accounts, and judgments will not disqualify a buyer from obtaining a sub prime mortgage loan. Naturally, loans of this sort have higher interest rates. However, if the home buyer maintains a good payment history, they will have the option of refinancing for a better rate in the future.
Other Loan Options Available after Bankruptcy
As mentioned, sub prime mortgage lenders offer a range of home loans for every need.
Following a bankruptcy discharge, home buyers have the option of obtaining a “no credit score home loan.” Because lenders do not offer 100% financing on these loans, buyers must be prepared to pay a 20% down payment.
Another loan option available is the zero down home loan. This loan is offered to buyers with good and bad credit. Zero down home loans include 100% financing, which is perfect for first time home buyers and buyers with little cash savings. To qualify for a no money down home loan with bad credit, your credit score cannot fall below 580.
Summary
Excellent credit is not required to buy a home. Of course, a higher rating will qualify home buyers for a low rate and better loan programs. Still, buying a home after bankruptcy is easy.
Although home loans following a bankruptcy discharge come with high rates, a home purchase is a great way to quickly boost a low credit rating. Here are a few tips on getting a low credit score mortgage loan.
Call Today for a Free No Hassle Consultation ask for Charles 313-343-9930
Here are a few tips on getting a low credit score mortgage loan.
Sub Prime Mortgage Loan Programs
There are many options available to home buyers with a low credit rating. Credit scores below 680 do not qualify for prime home loans. Hence, these persons will need to speak with a sub prime mortgage broker or lender. Sub prime loans are intended to assist those who cannot obtain traditional mortgage financing. These lenders work with all types of people and credit situations. Furthermore, sub prime lenders have a multitude of different loan options.
Who Qualifies for a Sub Prim Mortgage Loan?
Anyone with a low credit score can get approved for a sub prime mortgage loan. However, there are certain limitations. Many lenders will not approve a mortgage loan if the borrower's credit score is below 500. In this instance, the risks are too high. Home buyers who fall into this group may consider improving their credit before applying for a home loan.
Having a chapter 7 bankruptcy, collection accounts, and judgments will not disqualify a buyer from obtaining a sub prime mortgage loan. Naturally, loans of this sort have higher interest rates. However, if the home buyer maintains a good payment history, they will have the option of refinancing for a better rate in the future.
Other Loan Options Available after Bankruptcy
As mentioned, sub prime mortgage lenders offer a range of home loans for every need.
Following a bankruptcy discharge, home buyers have the option of obtaining a “no credit score home loan.” Because lenders do not offer 100% financing on these loans, buyers must be prepared to pay a 20% down payment.
Another loan option available is the zero down home loan. This loan is offered to buyers with good and bad credit. Zero down home loans include 100% financing, which is perfect for first time home buyers and buyers with little cash savings. To qualify for a no money down home loan with bad credit, your credit score cannot fall below 580.
Summary
Excellent credit is not required to buy a home. Of course, a higher rating will qualify home buyers for a low rate and better loan programs. Still, buying a home after bankruptcy is easy.
Although home loans following a bankruptcy discharge come with high rates, a home purchase is a great way to quickly boost a low credit rating. Here are a few tips on getting a low credit score mortgage loan.
Call Today for a Free No Hassle Consultation ask for Charles 313-343-9930
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