Home Loans for People with Bad Credit from Mortgage Lenders Approving Low Fico Mortgages
Millions of Americans have bad credit and need help with home financing from a lender who offers mortgage programs to help facilitate the process of buying a house. Since the housing crisis that erupted a few years ago, the average credit score for consumers in the U.S. has dropped drastically. The demand for bad credit home loans has risen significantly, yet most mortgage lenders have tightened their guidelines for home buying and refinancing considerably.
We strive to provide opportunities with home loans for people with bad credit scores. Our site was designed to assist consumers with comparing lenders offering a wide variety of bad credit home mortgages with FHA, VA and conventional financing options. It's no secret that Fannie Mae, Freddie Mac and FHA have begun easing their credit standards on many housing loan programs because the U.S residential real estate market has begun recovering.
Compare Home Loans for People with Bad Credit Seeking Financing Relief from FHA, VA and Private Money Sources
Bad Credit Home Loan Highlights from Subprime Lenders Hard Money Sources and FHA Lending Specialists Online
- Get Help Buying a Home with Bad Credit Even if You Were Rejected by Lenders
- Refinance Your Mortgage with an Affordable Fixed Rate Loan for People with Low Credit
- Learn more about Fixed Rate FHA Mortgages Regardless of Your 3 Credit Scores
- Shop Offers on House Loans with Bad Credit Regardless of Fico Scores
See home loans for people with bad credit that are available to qualified borrowers. Interest rates and loan programs are subject to change without notice. Check with your loan officer for current rates and mortgage program eligibility. Financing a home with bad credit has its challenges, so discuss your eligibility and expectations with one of our consultants today. There is no obligation when you apply online or request more information.
If you already have a VA or FHA loan insured by the government you may be pleasantly surprised at the expanded guidelines for the streamline refinance. This program is less concerned with your credit history and more concerned with uncovering monthly savings derived from home refinancing. We will help you find home loan lenders for bad credit.
Top 3 Most Requested Loans for People with Low Credit Scores:
1. FHA Loans for Bad Credit: HUD and the Federal Housing Administration have been insuring home loans for people with poor credit for several generations.
2. Bad Credit Refinance Mortgage – It's no secret that sometimes homeowners run into obstacles making the monthly payments. When rates fall below the level you have on your current loan it is wise to research opportunities to lower your housing expenses.
3. Hard Money Loans – People with unusual circumstances often benefit from financing products that private money broker's offer. In most cases the closing costs and rates are higher, but in some cases this type of loans still makes sense.
|New Rules On Home Mortgages for People with Bad Credit Scores
For many, bad credit can seem like the ultimate roadblock in the path to their dream of owning a home. It surprises many to learn that bad credit doesn't make it impossible to get a home, however. There are house loans for people with bad credit out there that can help anyone purchase a home and fulfill their dreams. It's not always the easiest path to home ownership, but it's one that is worth considering. This is good news for first time home buyers with bad credit because the U.S. government is intent on raising homeownership levels for millennials.
First, it's worth understanding that most lenders look at credit score as a kind of measurement of risk. Credit scores indicate your likelihood of repaying money you have borrowed, and are made up by numerous things ranging from your current amount of debt to any late or non-payments you may have made. When your credit score is high, lenders use it to indicate that you're likely to repay loans. When it's low, it's a sign that you're a higher risk to lenders at that you're less likely to repay your loans. As a result, you'll have a harder time qualifying for loans and when you do, you'll likely have more restrictive terms or higher interest rates to offset the risk. The good news is that today there are much more opportunities to secure home loans for people with bad credit.
Major financing enterprises like Fannie Mae and Freddie Mac require higher credit scores than other lenders, and these are the two primary lenders that handle mortgages today. However, FHA still insures bad credit history home loans. They are actually backed by the government and they offer some of the best second chance loans for home buying. Other common choices include subprime and hard money home loans that come with much higher interest rates or even adjustable rates. It's important to always look at terms and rules for a loan before you agree to it. With that in mind, what are the rules associated with bad credit rating home loans? Usually, a few basic things will exist that will have an impact on you being approved.
It's important to always look at terms and rules for a loan before you agree to it. With that in mind, what are the rules associated with house loans for bad credit? Usually, a few basic things will exist that will have an impact on you being approved.
- For most poor credit home loans you'll need a down payment. The type of loan you take out will dictate this amount. In the case of the Federal Housing Administration, for example, you'll need 3.5% down. Other loans will have different down payment amounts required.
- There is usually still a minimum credit score even on a home loan for people with bad credit. This minimum score can vary greatly, but in general a score of about 500 is the lowest possible qualifying figure. Again, different loans have different credit score requirements in place.
- The exception to this rule is that some hard money lenders may actually offer loans without a minimum credit score at all. However, in order to qualify for these loans you will need much more equity to offset the lack of a credit score restriction.
- Your loan to value ratio will need to meet acceptable levels with most bad credit house loan programs as well.
Your employment history and income are the final determining factors, and you will need to fall within specified debt to income ratio levels and be able to prove that you have held down steady employment for some time. In the case of FHA house loans for poor credit, there are many standards to consider, but income and employment history are far more important than credit score.
The home loan process can be daunting to first time home buyers and borrowers with low credit scores have even more challenges. VA, FHA and the USDA continue to approve bad credit house loans to people that can document compensating factors. Most experts believe that lenders will be easing guidelines this year, so don't let your past credit problems hold you back from buying a home. Look for new programs on home loans with low credit scores. Let the experts help you find loans for first time home buyers with bad credit.
With interest rates this low it makes sense financially to continue your search for a company that can meet your financing needs. BD Nationwide has a significant amount of experience with alternative mortgages and we would like to help you secure a lender that can facilitate your needs. The fact is that there are not many companies that offer options for home loans with no credit. Talk to companies that extend offers on bad credit house loan programs for buying and refinancing.
Resources: Federal Trade Commission Tips on Credit Repair
Both the federal and state departments that oversee finance laws and regulations describe bad credit home mortgages or "subprime loans" as programs for borrowers of those who are considered a more significant credit risk because of the following factors below:
- 2 or more 30-day delinquencies within the prior year
- 1 or more 60-day delinquencies within the prior 2 years
- Foreclosure, or charge-off within the prior 2 years
- Bankruptcy within the last 5 years
- Fico scores in the 500 to 640 range
- Compare terms on home loans with bad credit
- Above 50% on Debt to income ratios
Talk to lenders that take chances on higher risk borrowers by offering bad credit home financing for people that have compensating factors that outweigh their low credit scores.
What People Are Saying About BD Nationwide Online:
"A friend referred us Nationwide after multiple lenders turned us down for home loans because we had bad credit. It was refreshing to see a loan company give us a second chance. We were even blessed with a great fixed mortgage rate. Thank You Nationwide! -
J. Rawlings, Portland, OR.
Nationwide On Facebook
Fortunately our friends referred us to Nationwide! We were denied several times to finance a house because our fico scores were insufficient. Somehow, they were able to approve us for a bad credit home loan with an interest rate at 4% fixed. We closed escrow in 30 days and are now happy homeowners.
- James D., Seattle, Washington
After our local bank and credit union rejected our loan applications, we had given up on becoming homeowners at least for this decade. My husband submitted an application with BD Nationwide and they were able to pull a rabbit out of a hat and get us approved for a first timer home loan with a rate below 4%. We are so happy to own a house in a great neighborhood with affordable payments.
- Tammie B., Austin Texas
Looking for a company that helped with home loans bad credit was a pain, until we found Nationwide. They introduced us to several mortgage lenders that were actually able to help.
- Ron K., Los Angeles, California
If you need assistance with alternative house financing, visit bdnationwidemortgage.com. In just minutes we were reviewing quotes from several mortgage companies that made home loans for people with bad credit.
- Sam P., Denver, Colorado
We were tired of renting and BD Nation helped us shop house loans even with our low credit scores. We found a lender that approved us for a loan and now we are homeowners! Thanks
- Jenny F, Dallas Texas