#Poor Credit Home Loans

Compare Poor Credit Mortgages and Low Interest Rates for House Buying, Refinancing, Consolidation and Cash Out

The home equity lending market has tightened significantly for cash out refinancing transactions like second mortgages and equity lines of credit, so most borrowers are returning to their 1st home loan to refinance and obtain cash out. As the dust begins to settle after the Fannie Mae and Freddie Mac crisis, the bad credit home loan market is hoping the Fed will intervene with mortgage rate cuts that will spur positive changes.

Refinance your home with a Low Fixed Rate Loan with No Pre-Pay

Are you having trouble qualifying for bad credit mortgages ? Homeowners with fair and bad credit scores have found qualifying for sub-prime loans nearly impossible, so they are turning to FHA and VA that are more lenient with equity and poor credit. Even borrowers with good credit have struggled to qualify for conventional loans because millions of Americans have lost a significant amount of their home equity with deflated values. FHA loans have helped these good credit borrowers refinance even without equity.

Refinance Bad Credit Home Loans with a Low Fixed Rate Loan with No Pre-Pay and No Closing Costs out of Pocket!

With traditional lenders, refinance loans are more difficult to get approved when the borrowers have bad credit scores, but with record low rates anything is possible! We know that get approved for a loan with poor credit can be challenging, so we will connect you with lenders that hire a staff of loan officers that have experience with subprime and government financing.

Considering The Risk With Home Loans For Bad Credit

A prospective homebuyer, especially one with less than perfect credit, may be concerned that they won't be able to qualify for a traditional loan from their local bank or credit union. This concern is not unfounded as banks are more aware now than ever before of the risks associated with giving out home loans to individuals with bad credit or a limited credit history. To put it simply, home loans for bad credit borrowers put lenders at significant risk.

Many Applicants Offer More Than Just Bad Credit History

While an individual's credit score is definitely one of the primary things that lenders look at, there is much more than just credit that can affect whether or not an individual qualifies for a loan at all or gets the best rates available. Other factors, such as employment, debt to income ratios, and even previous judgments are collections can all lead to being disqualified from a loan.

What this means is that individuals who are interested in purchasing a house need to take a careful look at their personal finances, both currently and over the last few years, so that they know exactly what to expect when they walk into a lending institution for the first time and discuss their options.

Alternative Home Mortgage Loans for People With Poor Credit Scores

One resource that individuals with bad credit have available to them when it comes to purchasing a home is the FHA. The Federal Housing Administration has the specific goal of helping as many people as possible qualify for home loans even if they would be declined a loan from other lending institutions. While the FHA may not be able to provide a loan for every person out there, they do have the authority to provide loans to individuals who would be prevented by lending regulations that apply to other lenders. One example of this is when it comes to the "ability to pay" rules that have been put in place.

Most lenders are required to prove that borrowers have a debt to income ratio no higher than 43% in order to qualify for a loan. Because banks are concerned with the risk that comes from loans to individuals with bad credit, this means that they often focus only on loans that have the lowest amount of risk associated with them and try to do business with borrowers who have exceptional credit scores and very low debt to income ratios. However, the FHA continues to take more risks as they allow many poor credit mortgage lenders to do business with individuals with a much higher debt to income ratio and who have credit scores as low as 500.

Military Financing Incentives with Poor Credit Mortgages for Cash Out

The Department of Veterans Affairs has put a lot of thought into their home financing program that is extended to the active military personnel and veterans in the United States. The VA program enables qualified VA borrowers to buy a house with zero down-payment. Military borrowers have a unique opportunity to get VA house loans for people with low credit scores. They also approved underwater programs to Vets who need to refinance regardless of what their loan to value may be.