Home Purchase Mortgage Loan With Bad Credit And Low Credit Scores

This Article Is About Home Purchase Mortgage Loan With Bad Credit And Low Credit Scores

Many renters who are looking for Home Purchase Mortgage Loan With Bad Credit And Low Credit Scores have the fear of applying for a home purchase mortgage loan.

This is because they think their credit is too bad and think they will get rejected.

  • Whatever the credit score is, whether it is in the 400s or 600s, it can be improved by some quick credit fixes
  • Consult with a loan officer
  • The mortgage loan officer will evaluate the mortgage applicant’s credit profile
  • Loan officers will guide buyers in qualifying for a home purchase mortgage loan program that benefits them
  • For applicants who quite do not qualify, the loan officer will guide them in advising them on what they need to do to qualify

In this article, we will cover and discuss Home Purchase Mortgage Loan With Bad Credit And Low Credit Scores.

FHA Guidelines On Bad Credit And Low Credit Scores

FHA Guidelines Are The Following On Bad Credit And Credit Scores:

  • The minimum credit scores to qualify for FHA Loan is 580 FICO for a 3.5% down payment home purchase mortgage loan
  • Homebuyers with credit scores between 500 FICO and 579 FICO can qualify for FHA Loans with a 10% down payment
  • Mortgage applicants can have bad credit to qualify for FHA Loans
  • Outstanding collections and charge offs do not have to be paid off to qualify
  • However, HUD does require borrowers been timely on all of their monthly payments for the past 12 months
  • There is a two year waiting period after the Chapter 7 bankruptcy discharged date
  • Homebuyers can qualify for FHA Loans one year into a Chapter 13 Bankruptcy Repayment Plan with Trustee Approval
  • There is no waiting period after the Chapter 13 Bankruptcy discharged date to qualify for FHA Loans
  • There is a three year waiting period after a foreclosure to qualify for FHA Loans
  • The three-year waiting period after a short sale to qualify
  • There is three years  waiting period after the recorded date of the deed in lieu of foreclosure and/or from the date of the sheriff’s sale of the home

Or from the date the name of the deed was transferred out of the owner’s name to qualify.

Home Purchase Mortgage Loan Programs

What are the mortgage programs for buying a home

Housing prices have been skyrocketing throughout the United States. Starting in 2012, housing prices started creeping up in value and have not since stopped going up in value. There is more demand for homes than there is available inventory. Adding to the demand for homes are non-QM loan programs that enable more homebuyers to qualify for a mortgage.

Gustan Cho Associates. has NON-QM Loans and Alternative Lending Programs.

  • No waiting period after bankruptcy and foreclosure with non-QM loans
  • Gustan Cho Associates offers non-QM mortgages one day out of bankruptcy and foreclosure with a 30% down payment
  • Bank statement mortgage loan programs
  • No doc fix and flip loans
  • No doc investment property loans
  • No private mortgage insurance required
  • 12 months bank statement loan program for self-employed borrowers
  • No income tax returns required
  • No maximum loan limit
  • 90% LTV NON-QM Jumbo Loans with no mortgage insurance
  • Credit scores down to 500

Gustan Cho Associates has dozens of non-QM and alternative lending mortgage loan programs.

Re-Establishing Credit After Bankruptcy And Foreclosure

Consumers who recently had a bankruptcy or foreclosure should start re-establishing their credit as soon so they can rebuild their credit.

  • Credit scores will improve with new credit
  • Get 3 secured credit cards and make sure your balances are low
  • Always keep balances below the 10% to credit limit
  • After the secured credit cards have been seasoned for at least one year, consumers should qualify for unsecured credit cards
  • Again, always pay down credit cards every month where credit balances remain below 10% of the credit limit

Homebuyers can contact us at Gustan Cho Associates at 262-716-8151 or text us a faster response. Or email us at gcho@gustancho.com.  The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

Leave A Reply

Your email address will not be published.

Call Now ButtonCALL NOW