Home Mortgage Loan Lenders for People With Low Credit Scores
Home mortgage loans for people with poor credit are available at reasonable rates if you find the right lender. With some time spent online researching for low credit score lenders, you can base your financing decision on loan estimate numbers. Even with bad credit, you can find flexible terms, so you can find the right home loan for your budget.
Low credit score lenders, also called sub-prime lenders, offer financing to those with scores of less than 650 at slightly higher than conventional loan rates. On average rates are 1% to 3% higher than “A” rated loans, but expect to pay more if you have just discharged a bankruptcy or foreclosure.
Sub-prime loans aren’t restricted like conventional loans, so you have many more options with your terms. You can secure 100% financing, interest only loans, or a traditional fixed rate 30 year mortgage.
Unfortunately, there are companies that would take advantage of your financing situation by charging high rates and fees. You can protect yourself from these dishonest companies by comparing loan offers from several different companies.
The best way to find a lender is to base your decision on their loan estimates. Online lenders can get you mortgage quotes in just minutes, without having to access your credit report. Not only will you get information on rates, but also on closing costs and miscellaneous fees.
To get the most accurate numbers, request quotes on the loan amount and down payment you ideally want. Just remember that if you decide on different loan terms, you will need to ask for new loan quotes.
To give yourself enough time to find the best sub-prime lender, start searching for financing before you look for a house. By lining up your mortgage ahead of time, you’ll have a better idea of your borrowing potential. You will also be able to close the deal sooner on your new home.
Most online lenders can process your loan application in a few days, with funds available in two weeks. Your escrow company will handle the final disbursement of funds.
Tags: A Rated Loans, Bad Credit, Bankruptcy, Conventional Loan Rates, Credit Report, Financing, Foreclosure, Home Mortgage Loan Lenders, Home Mortgage Loans, Interest Only Loans, Loan Quotes, Low Credit Score, Mortgage, Online Lenders, Poor Credit, Subprime Loans