Bad Credit Mortgage Loans

Home Loan With Bad Credit

Bad Credit Mortgage Loans

If you have had prior bad credit such as a prior bankruptcy, foreclosure, deed in lieu, short sale, open collections, judgments, tax liens, and charge offs and want to purchase a home, you can qualify for the dozens of FHA mortgage loan programs that are available.  FHA insured mortgage loans make those who have had prior bad credit become homeowners.  However, most lenders do want to see some established credit after the period of bad credit has been over.  Most lenders want to see timely payments in the past 12 months, re-established credit, and no overdrafts in the past 12 months.  One or two late payments and one or two overdrafts does not mean an automatic mortgage loan disqualification but a good letter of explanation will be required.  Bad credit mortgage loans is extremely popular due to the recent economic and banking collapse and there is life after bad credit.  Here are some general guidelines for bad credit mortgage loans.

Bad Credit Mortgage Loans Eligibility Requirements

  1. Minimum credit scores of  530 FICO  and above. For borrowers with credit scores between 530 FICO and 580 FICO, the minimum down payment of 10% is required.  To qualify for a minimum down payment of 3.5%, the minimum credit score required is 580 FICO or higher.  Non-traditional credit accepted is accepted for those who do not have installment loans or revolving credit.  Non-traditional credit are credit such as rental verification, utility payments, phone payments, and other scheduled monthly payments that are not reported on the credit reporting agencies.
  2. 3.5% down payment with a minimum of  580 FICO credit score  with no overlay bad credit mortgage loans.  If you can get an Automated Underwriting System approval by Fannie Mae, we can do the loan and close your loan in 30 days or less. 

3.  46.9%/ 56.9% debt to income ratios. Rental history is not needed.  The front end ratio is the housing ratio  and the  second ratio is the overall monthly debt to income ratio.

4.    No credit score needed. Non-traditional credit accepted.

5.  Constant communication. You will be working together with me from the time of application until clear to close. 

6.    Most bad credit mortgage loans are closed in 30 days or less.  Fast track bad credit mortgage loans   can be  closed in 10 to 14 days as long as we can order a rush appraisal.

 7.  3.5% down payment with score above 580, can be 100% gifted. 10% with score down to 530 can be 100% gifted

  8.  $100 down for HUD owned homes. Also offer Escrow hold back.    

  9.   Lowest rates because we have numerous lenders to chose from.

10.Pre-approvals based on AUS underwriting no pre-quals.

11.Seller can pay for buyers closing costs, taxes, insurance & MIP. 6% max seller contribution.

10. Fixed or adjustable rates offered. No prepayment penalty.

11. Bilingual if needed. Also have bilingual processors on site.

12. Can flip homes into FHA loans without the 91 day waiting period.

13. 580 min score for 2-4 units (new program).

14. 530-579 credit score requires 10% down pmt.

15. Gift for down payment does not have to be a close relative. Friend for  5+ years would be acceptable.

16. 530 credit score for manufactured homes.

Gustan Cho NMLS ID 873293

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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