Florida Bad Credit Home Loans With No Lender Overlays

This BLOG On Florida Bad Credit Home Loans With No Lender Overlays Was UPDATED On June 29, 2017

Florida bad credit home loans are FHA Loans that is originated and funded by lenders with no lender overlays..

  • What we mean by Florida Bad Credit Home Loans?
  • Florida Bad Credit Home Loans is when a mortgage loan borrower has had prior bad credit but has re-established their credit and have no late payments in the past 12 months. 
  • Recent multiple late payments would be an issue and there is no way a person can qualify for a home loan if they have had tons of multiple late payments in the past 12 months.

Florida Mortgage Rates And Credit Scores

The lower your credit score, the higher your mortgage rates.

  • Most mortgage lenders have credit score cutoffs for certain mortgage rates.
  • I specialize in bad credit home loans in Illinois and Florida and a large percentage of my business is helping mortgage loan borrowers with credit scores under 600 FICO.

What are the current Florida mortgage rates? What credit scores can I work with?

I recently qualified a mortgage loan client who had a credit score of 588 FICO.

  • Mortgage rates for a mortgage loan borrower with a 588 FICO credit score on a FHA insured mortgage loan is higher than those with higher credit scores. 
  • Higher credit scores means lower risk to lenders which in turn means lower mortgage rates.
  • Pricing Adjustments are pricing hits for lower credit score borrowers. 
  • For lower mortgage rates, borrowers should prepare for mortgage way ahead of time. 
  • Quick ways of boosting and increasing credit scores is paying down credit card balances to 10% of the limit.
  • For borrowers with no active credit, getting three to five secured credit cards with at least $500 credit limits will improve credit scores.
  • There are various ways of improving a person’s credit score in a short period of time. 
  • I have covered credit score improvement strategies on previous blogs and will cover more on this topic on future blogs.

Options On Florida Bad Credit Home Loans

For those mortgage loan borrowers who cannot afford the luxury of waiting several months to improve their credit, they will be charged higher mortgage rates due to their lower credit scores. Lower credit scores means higher rates.

  • Conventional mortgage loans have higher mortgage rates compared to FHA insured mortgage loans. 
  • Conventional mortgage loans are extremely credit score sensitive. 
  • For example, most conventional mortgage loan programs have minimum credit score requirements of 620 FICO or higher. 
  • There is an adjustment cutoff at 640, 680, 720, and 760. 
  • By adjustment cutoffs, if a mortgage loan borrower surpasses each of these credit score limits, their mortgage rates will be lower. 
  • For those with credit scores of 760 or higher will get the best conventional mortgage rates.

Waiting Period After Bankruptcy And Foreclosure

With conventional mortgage loans, the waiting periods to qualify for a mortgage loan after a bankruptcy and a foreclosure are much longer than FHA insured mortgage loans.

  • There is a waiting period of 4 years after Chapter 7 bankruptcy to qualify for Conventional Loans
  • There is a 7 year waiting period after recorded date of foreclosure to qualify for a conventional  mortgage loan
  • There is a four year waiting period after recorded date of deed in lieu of foreclosure and/or short sale to qualify for conventional loans
  • Those who had mortgage part of Chapter 7 Bankruptcy, there is a four year waiting period to qualify for Conventional Loans from the discharged date of the bankruptcy
  • The foreclosure can get finalized after the discharged date of the Chapter 7 Bankruptcy

If you have any questions on how your credit scores affect mortgage rates, please contact me at www.gustancho.com .

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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