Credit Problems?

The gigantic mortgage and credit crisis which exploded onto the scene in early 2007 has made bad credit and bruised credit mortgage loans extremely difficult to find. MOST lenders don't offer bruised credit loans anymore, and those few that do, require BIG down payments and extremely high interest rates.

What’s Your Credit Grade?
Every lending facility uses guidelines to determine your credit worthiness. Upon reviewing your application, you’re given a credit grade and a determination regarding your loan’s approval or denial. MOST lenders DO NOT give loans to those with bruised credit anymore. If you are denied by a one lender, contacting 10 more probably won't help. Click here for some general criteria used within the lending industry to determine credit.

CREDIT PROBLEMS & ANSWERS

Late Payments
If your credit has multiple RECENT 30, 60, or 90 plus day late payments, you probably won't qualify. Especially if those late payments occurred LESS THAN than two years ago. Lenders want a clean recent payment history. Check HERE for some general criteria used within the lending industry when you have late payments.

Collections
If your credit history indicates unpaid collection accounts, most "A" grade loan lenders will require these amounts to be paid off before the loan is funded. FHA typically will ignore them if they are under $500, and more than 2 years old. Medical collection "usually" are ignored. Judgments' (you went to court & lost), are almost always REQUIRED to be paid off before approval.

Bankruptcy & Foreclosures

If your bankruptcy is more than two year old, but less than four, or your foreclosure was recorded at least three year ago, you may qualify for a with as little as 3-5% down payment.

If your bankruptcy is older that 4 years, and you have good re-established credit, you may now qualify for an "A" loan.

High Debt Ratios
If your income-to-debt ratios are too high, you can either reduce your personal debt (i.e., pay down your debt), obtain a debt consolidation loan, pay down your debt with funds from the sale of personal assets (boat, camper, etc.), select a lower interest rate ARM loan, or add a co-mortgagor. 

Is a debt consolidation loan for you?
If you have any late payments on your record, part of the reason may be because of high credit card debt. If you qualify, you can pay off all of your high-interest credit cards into a low debt reduction refinance loan which may be tax deductible (unlike credit cards, which are NOT tax deductible).

Call us at (651) 552-3681. Speak to a mortgage professional who can help determine your credit status - its a FREE service!