Bad Credit Mortgages Available [mortgageloan-processor.blogspot.com]
www.alliancemtg.com How to get bad credit mortgages in any economy. These are proven methods and may help you get a bad credit home loan or a bad credit mortgage refinance.
mortgageloan-processor.blogspot.com Bad Credit Mortgages
If you have bad credit and have been thinking of buying a house or refinancing your current mortgage you have probably run into a few problems. With the economy in it's current recession, lenders have tightened down even more on lending requirements and have raised the credit score requirements to qualify for mortgage loans. Are there even bad credit mortgages out there for people to quality for? The answer is a nice loud YES!
The primary bad credit mortgage product is called an FHA mortgage. FHA stands for (Federal Housing Administration) and is insures 100% of the loan amount that a lender funds to a borrower as long as it fits within FHA guidelines. This is nice because you can get an FHA loan from any large bank or the bank of your preference so it really opens up your options to getting the best mortgage loan interest rate.
FHA guidelines have less stringent guidelines than a regular conventional loan.
What exact guidelines do you have to follow to achieve an FHA loan you may ask? The guidelines to be able to qualify for an FHA loan if you have less than perfect credit is as follows;Regardless of how bad your credit is you must not have any lates or collections that have happened within the last 12 months. The only way to get away from this guideline is if you have a high credit score. If you have a high credit score above 720 than your score will compensate for blemishes that have happened within the last year on your credit report.
FHA just recently announced that you must have a mid credit score of at least 620. This used to not be the case. Out of your 3 credit scores the middle number must be above the 620 score to even be considered for an FHA mortgage loan.
Mos people that have bad credit usually have above a 620 credit score so this requirement is great for someone seeking a bad credit mortgage product.All Collections, liens, and judgments must be paid prior to the closing of the loan. Its totally ok if you have had collections, or judgments in the past, but they must all be paid off before the loan can close. The reason for this is that if you have an open collection or judgment, those types of accounts take first lien position on the property you are buying. This means that if you lost your house the collectors would get the money first before the lender who loaned you the home loan. Lenders simply do not go for this on an FHA mortgage.
We have just barely scratched the surface on FHA loans but hopefully if you have bad credit you have been filled with some hope of being able to purchase a home or refinance your existing home.
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