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| A | Impeccable | On time payment on all obligations. One or two 30 day late payments over the past few years on revolving credit or installment loan. NO late mortgage payment. Bankruptcy or foreclosure has been discharged or settled at least 4 years ago with excellent re-established credit. |
| A - minus | Minor blemishes in the last 2 years | No more than one 30-day late mortgage payment. One or two OLD 30 day late payments, no more than one 60-day late payment on revolving credit or installment loan. Bankruptcy or foreclosure has been discharged or settled over 4years ago with excellent re-established credit. Minimum down payment 5% |
BRUISED CREDIT GRADES
Qualify
For Home Financing Even With Less-Than-Perfect Credit
In the
mortgage lending industry, some loans are made to homeowners who
do not meet traditional approval criteria. If you’ve fallen
behind on your credit cards or other loans or your history shows
a foreclosure, bankruptcy, or auto repossession. Don’t
worry, The Joe Metzler Mortgage Group can help. You may still qualify
for a mortgage loan that helps you consolidate debt, make home
improvements, buy a new home, refinance your existing home, put your
kids through college, or get cash for any reason.
Here are some general criteria used within the lending industry when you have bruised credit. Each one of these bruised credit grades CAN get a mortgage loan. As you go from "AA" to "D", your interest rate will rise, and the minimum down payment (or equity in the home for refinance) will rise.
| AA | Good | A few OLD 30 days late payments, a couple of OLD 60 day late payments. A 30-60 day late only once on a mortgage payment. Bankruptcy or foreclosure has been discharged or settled at least 4 years with some re-established credit. Down payment 5-10% |
| A - minus | Minor blemishes in the last 2 years | No more than two 30-day late mortgage payments. One 60-day late payment if you have revolving credit or are on an installment plan. Bankruptcy or foreclosure has been discharged or settled over 2 years with some re-established credit. Down payment 5-10% |
| B | Acceptable blemishes in the last 17 months | Up to four 30-day late mortgage payments. Or, up to two 60-day late payments with revolving or installment debt. Or, one 90-day late mortgage payment in last 12 months. Bankruptcy or foreclosure has been discharged or settled at least 18 months. Down payment 15%. |
| C | Acceptable blemishes in the last 12 months | No more than six 30-day or three 60-day late mortgage payments. Or, two 90-day late payments with revolving credit or installments. Bankruptcy or foreclosure has been discharged or settled at least 12 months. Down payment 20%. |
| D | Sporadic disregard for timely payments | Multiple 90 day late payments. Mortgage payments longer than 90 days past due. Down payment 25% OR MORE. |
There are no hard-and-fast rules for determining your specific credit grade. Each lender’s criteria may vary slightly. Call me today, I'll do a no cost, no obligation, pre-qualification. You may just be surprised at what you here!
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Joe Metzler,
MMS,
UMB |
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Email
Us
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Equal
Housing Lender - Our
services available only for properties located in
Minnesota, Wisconsin, and Florida.
