Bad Credit Mortgage Loans
Many folks have had a period of financial hardship during their lives and as a result, their credit has suffered. Some have filed bankruptcy while others have had a previous foreclosure which had impacted their credit and credit scores. As a result of derogatory credit, most of these folks could not get credit and had to purchase everything cash. We live in a credit driven world and requesting credit after your credit and credit scores took a recent major blow is often difficult.
Bad Credit Mortgage Loans: Home Loan With Bad Credit
I specialize in helping mortgage loan borrowers with prior bad credit get mortgage loan approvals. There is life after bankruptcy, foreclosure, and after periods of bad credit. As long as you have a full time job, I can get you a mortgage approval. However, there are conditions with bad credit mortgage loans and the mortgage loan borrower needs to prove that they have demonostrated timely payment history for at least 12 months with no lates during that period and have re-established credit history.
How Do Mortgage Underwriters View Bad Credit Mortgage Loans
FHA insured mortgage loans are phenomenal vehicles for those mortgage loan borrowers with prior bad credit credit. As stated earlier, I specialize in bad credit mortgage loans but the mortgage loan borrower needs to prove that he or she is now creditworthy and has re-established credit as well as timely credit payment history for the past 12 months. Mortgage underwriters frown on any late payments after a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale. Any overdrafts in the past 12 months is a definite NO NO. A recent overdraft can be a deal killer. Mortgage underwriters will evaluate the overall credit history and financial profile of the mortgage loan borrower when underwriting bad credit mortgage loans. For example, they might look at a ten year credit history and if the borrower had a period of bad credit for two years and then they re-established their credit and have been timely since that period of bad credit history, this would be the ideal candidate. However, if the mortgage loan borrower has consistent late payment throughout the whole ten year credit history, the candidate would probably not be eligible for a mortgage loan nor any other loan.
It will be extremely difficult for a mortgage loan borrower to get a mortgage approval if they have had recent late payments. My advise to those who are seeking a mortgage and have had recent late payments is to wait until he or she has been timely on their monthly credit payments for 12 consecutive months and then apply.
Gustan Cho NMLS ID # 873293