In this article, we will cover and discuss Illinois mortgage with bad credit mortgage options. There are several simple tips that everyone should be aware of in maintaining the best possible credit score. You do not need perfect credit to qualify for a mortgage. However, you should maximize your credit scores prior to applying for a mortgage. Higher credit scores mean lower mortgage rates. Lower mortgage rates mean tens of thousands of dollars in savings on a 30-year fixed-rate mortgage. Credit scores fluctuate monthly. There are quick fixes to boost your credit scores.
Best Mortgage Lenders in Illinois For Bad Credit
You do not need to hire a credit repair company to fix your credit. Whatever a credit repair company does, you can do it yourself. Actually, credit repair companies can do more damage than good. You cannot have credit disputes on non-exempt credit tradelines during the mortgage process. Any pre-approval letters issued by a loan officer with non-exempt credit disputes are considered null and void. Not all mortgage lenders in Illinois can do the same FHA loans or other government and/or conventional loans. One lender may require a 620 credit score for an FHA loan while another lender with no lender overlays will approve a borrower with 500 credit scores.
Can I Get Pre-Approved For A Mortgage With Bad Credit?
If you have prior credit issues, you need the best mortgage lenders in Illinois for bad credit. Not all mortgage lenders have the same lending requirements for government and conventional loans. Many homebuyers with bad credit in Illinois think because FHA loans are government-backed loans, all lenders will have the same lending guidelines. This is not true and is most often not the case. Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders due to last-minute mortgage denial, stress during the mortgage process, or because the lender did not have the loan program the borrower was looking for. Gustan Cho Associates has zero lender overlays on FHA, VA, USDA, and conventional loans.
Can I Get Pre-Approved For A Mortgage With Bad Credit?
If you are ready to start the qualification and pre-approval process on a mortgage, please consult with a loan officer first. It is never too early to consult with a loan officer. Actually, we strongly recommend you consult with several loan officers. See what they have to say. See how you get along with them. If you have bad credit and lower credit scores, it is highly recommended you take a look at this article and a few others on this website to better understand the basic agency mortgage guidelines. Oftentimes, when a loan officer denies a homebuyer, the loan officer does not tell the homebuyers they do qualify for an FHA loan but not with their bank. Many borrowers will then do their research to find out if they got denied because of the lender overlays and not because they do not qualify. Gustan Cho Associates are experts in helping borrowers who could not qualify at other lenders due to their lender overlays.
How To Apply For An FHA Loan With Bad Credit In Illinois
You are going to need to trust your loan officer. Vett them out. Do your own due diligence by checking them online and checking their online reviews. Do not be alarmed if they have a few bad reviews. After all, we are all human beings. We cannot please everyone. See how they responded to the bad review. Remember there are always two sides to the story. Check the internet and look at multiple legitimate review sites. Talk with family, friends, business associates, co-workers, and realtors for referrals. The homebuyer and loan officer need to have a mutual chemistry in understanding each other so they can build a solid foundation on their journey for the homebuying and mortgage process. Your loan officer will guide you from step A through Z on the mortgage loan application process leading to pre-approval to the home mortgage process.
Non-QM Loans With No-Income Docs in Illinois
Gustan Cho Associates has a national reputation for being a one-stop mortgage shop. We have no lender overlays on government and conventional loans. We also offer non-QM and alternative financing mortgage programs. There is not a single non-QM mortgage program that Gustan Cho Associates does not offer. Some of our very common non-QM mortgage programs include bank statement mortgages, non-QM Jumbo Loans, mortgages one day out of foreclosure and bankruptcy, asset-depletion loans, fix and flip loans for real estate investors, and countless other owner-occupant, second home, investment property, and commercial loan programs.
FHA Loans in Illinois With 500 FICO
There are some quick fixes to boost your credit scores. You can contact us at Gustan Cho Associates and we can advise you on how to boost your credit scores with just some quick fixes. Consumers with zero balance credit cards, always have a balance of at least $10 dollars for maximum credit score. Having a minor balance like $10 dollars will increase scores.
Illinois FHA Loan Pre-Approval Process
Homebuyers should plan well ahead prior to buying a house to prepare their credit not just to qualify for a mortgage but to get the best rate. Do not max out credit cards. Maxed-out credit cards will plummet credit scores. It is always good to have large available credit on credit cards. Try to keep balances below the 10% level. Lower credit balances are best for credit scores. However, zero balances will hurt scores. Following these tips will help me qualify for an Illinois Mortgage With Bad Credit.
Adding Secured Credit Cards to Boost Credit Scores
Always try to have 3 credit cards with available credit balances. Borrowers with one credit card should get two more credit cards. Consumers with bad credit and are unsure that they qualify for unsecured cards, then get two secured credit cards with at least a $500 credit limit. With new credit cards, always keep credit balances low but yet avoid having a zero balance. Keep a $10 dollar credit balance on your credit card every month.
How To Re-Establish Credit To Qualify For a Mortgage?
Do not apply for credit all at once. As an example, applying for ten credit cards all at once will not just drop credit scores due to multiple credit inquiries but will alert creditors of potential fraud. Multiple credit applications at the same time show signs of desperation for credit. When applying for credit cards, the credit card company runs a hard pull credit report.
FHA Loans With Credit Disputes
Hard pulls with temporary drops in consumer credit scores and is considered negative. It is okay to apply for a credit card from time to time. But not too often. This is because a hard pull credit report will lower scores. Lenders tend not to view it favorably. Lenders and other creditors do not view multiple credit inquiries at the same time favorably.
FHA Loans With Recent Late Payments
Always pay your bills on time. One 30-day late payment on installment, revolving, mortgage or automobile loan can drop scores by at least 50 points or more. Being late on one mortgage or automobile loan payment, borrowers may need to wait have one year of continued timely payments to qualify for a mortgage home loan. Lenders normally want to see 12 months timely payments. Most Illinois mortgage with bad credit lenders want to see at least 12 consecutive months of timely payment history on all of the monthly debt obligations in order to approve a borrower an Illinois mortgage with bad credit.
Qualifying For a Mortgage With No Credit Scores
Remember that every consumer is allowed one free credit report from each of the three major credit bureaus once a year. Consumers can get a copy of their free annual credit report once a year. Take advantage of the annual free credit report and monitor it like you are monitoring your checking and savings account.
How Do A Rapid Rescore To Update My Credit Report To Close on My House?
Check for errors and accuracy on all credit tradelines. Remember that low credit scores cost money not just in higher mortgage interest rates but other expenses such as higher insurance premiums and higher rates on all credit. Lower credit scores mean higher interest rates on mortgages and auto loans, higher interest rates on credit cards, and higher insurance premiums on auto and health insurance. Also, keep in mind that credit reporting agencies have a track record of making mistakes in reporting credit and consumers can have errors in the consumer credit report.
Mortgage Broker For Bad Credit Borrowers
Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify at other lenders. We are direct lenders with no overlays on government and conventional loans. We also offer non-QM loans where there is no waiting period after bankruptcy and/or housing event. Gustan Cho Associates offers bank statement loans for self-employed borrowers where no income tax returns are required. We only require 12 months of bank statement deposits. The average of the past 12 months of deposits will be used as borrowers’ monthly income. No-doc loans and stated income mortgages are very popular for borrowers with irregular self-employed incomes. DSCR loans are for rental property homebuyers where income tax returns is not required.
What Is The Lowest Credit Score I Can Apply For FHA Loan?
We cater to all different types of borrowers. The Team at Gustan Cho Associates understands that hard-working folks can encounter extenuating circumstances where they lose their jobs and get their credit bruised. A large percentage of our borrowers are folks who never thought of getting a home but realize their dream of home ownership become a reality.
The Best Mortgage Lenders After Bankruptcy and Outstanding Debts
Here are our typical borrowers who we help:
- Prior Bankruptcy and/or Foreclosure
- Late payments after bankruptcy and/or foreclosure
- VA and FHA borrowers in an active Chapter 13 Bankruptcy Repayment Plan
- Recently Chapter 13 Bankruptcy discharged borrowers
- Folks with late payments in the past 12 months
- Folks who have not met the mandatory waiting period after bankruptcy and/or foreclosure
- W-2 Income Only borrowers who do not want their income taxes used to qualify for a mortgage
- VA, FHA, USDA, Conventional, NON-QM, Jumbo Mortgage Borrowers
- Gustan Cho Associates also offers a 10% down payment for NON-QM Jumbo Mortgages
There are no non-QM loan programs we do not have that are being offered in today’s market.
Best Mortgage Broker For Illinois Mortgage With Bad Credit
Borrowers who need to qualify for a mortgage with a mortgage company licensed in multiple states with no lender overlays on government and/or conventional loans, please contact us at 800-900-8569 or text us for a faster response. Or email us at firstname.lastname@example.org. We have a national reputation of being a one-stop mortgage shop due to our expertise in non-QM and alternative financing mortgage programs. Gustan Cho Associates has dozens of partnerships with wholesale lending partners. non-QM loans are becoming increasingly popular with many new loan programs being launched every month. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.
June 1, 2022 - 8 min read