Bad Credit Home Loans
Although the Sub Prime Mortgage Loan, also known as a bad credit home loan, is often our option of last resort, some borrowers simply cannot qualify under traditional conventional home loan program guidelines due to significant levels of bad debt. For those Bad Credit Home Buyers and refinance borrowers, Lifestyle-Mortgage.com offers a wide range of mortgage loan products that can assist nearly everyone in making their dreams of home ownership come true in Knoxville, TN and beyond, regardless of past credit problems.
Typically, when this situation is reached, a full analysis has been done on the mortgage loan package, regardless of whether the borrower is buying or looking to do a Mortgage Refinance With Bad Credit. In order to find the best approach for your situation, our creative and resourceful loan pros will try to locate the bad credit home loan that best suits your home loan needs and makes the path to home ownership as smooth as possible in Gulfport, MS or in any of the other cities we serve.
Lifestyle-Mortgage.com will be able to review this information from a combination of your credit application, credit report, client consultation and subsequent loan documentation type. Our trained loan professionals will then give you the best available Alabama, Missouri, Mississippi, North Carolina or Tennessee Mortgage program options based upon your particular situation, and together we can create a plan for your future that makes sense.
Our bad credit home loan programs include some with prepayment penalties in AL, MS, North Carolina, TN and some without them in Missouri. Typically our bad credit loans will include these options:
- 30 Year Fixed Rate Loan in O’Fallon
- 15 Year Fixed Rate Loans
- 2/2/8 – 2 Years Fixed, Adjusting each following year in Greenville
- 3/2/7 – 3 years Fixed, Adjusting each year after the fixed period.
- Bad Credit 2nd Mortgage Programs
- No Income Verification Programs
- Jumbo Mortgage and Super Jumbo Bad Credit Programs in Lee’s Summit
- Non Owner Occupied (Real Estate Investor) programs in Greensboro
- Pre-Forclosure Hard Money Loan options
Give us a call or just complete our online Quick Apply application today!
Bad Credit Home Buyer Opportunities
It is important for our bad credit home buyers to recognize the value of the opportunities the credit impaired product range offers. Prior to 1990, it was almost impossible for borrowers to obtain a mortgage if they did not qualify for either a conventional or government loan. The non-conforming (Sub-Prime) lending market was developed to assist bad credit borrowers who fell into a higher risk category and needed a residential mortgage loan.
Many borrowers are good people who honestly intended or intend to pay their bills on time. A previously unforgiving bank now has more latitude to take into consideration events outside the borrowers control. The greater ability to overlook past credit problems has come to the mortgage loan industry, but the new leniency is not without a price.
Loan applicants in with poor credit should understand that investors get compensated for risk in the form of interest rates. The lower the risk, the lower the rate and vice versa. Therefore, there are several risk factors taken into consideration when evaluating a borrower for a mortgage loan in the Sub-Prime market in Mobile, AL and beyond. Obviously, the first thing that a lender looks at is how you have paid your bills and managed your credit in the past 2 to 5 years.
Late payments that are 30 days are generally considered minor problems; however, 60, 90 and 120-day late payments can make you a “C” credit risk from the start. Credit scores below 620, even with a good credit repayment history, can also place you into a higher risk category comparable to those who have filed for bankruptcy or faced a foreclosure.
Other factors that lenders consider with a Sub-Prime home loan are your debt-to-income levels (usually anything over 41% of your gross monthly income will place you into a Sub-Prime home loan with almost all lenders), employment history if less than 2 years, type of property, lack of assets, basically anything that falls outside of conventional or government lending guidelines.
So, if you have bad credit and want a home loan, why consider a sub prime loan? For several reasons. In a purchase transaction most borrowers can get into the home they want at today’s price. Once in the home, a borrower now has an opportunity to clean up their credit, reestablish new credit, and ultimately get a Refinance Loan with a traditionally lower rate at a later time. Complete our online Quick Apply application today!
Bad Credit Mortgage Refinance
If you already have a mortgage, a refinance to cash out equity to pay down higher rate credit cards, pay off a mortgage tied up in Chapter 13 with a Bankruptcy Loan, foreclosures, collections and liens is a great way to clean up a troubled credit history, save money each month and get back on your feet. Using this method, typically, with prompt credit repair action and 12 months of on-time mortgage payments, you can refinance into a conventional interest rate FHA Loan Alternative or one of our great Mobile Home Loan programs.
Remember these bad credit loans are typically for the short term, approximately 2-4 years, and are not recommended as loans for life . Most borrowers will refinance out after 2 to 4 years into an low fixed rate FHA Loan. The bad credit mortgage loan has a higher cost because the lender assumes substantial risk, for what is projected to be a very short period of time and these loans have higher than typical defaults, at conventional loan to values. For many, however, they remain a way to get a fresh start. Complete our online Quick Apply application today!
Second Mortgage With Bad Credit
If you have a low fixed rate 1st mortgage and have experienced some financial difficulties which have created some short term credit issues, Lifestyle-Mortgage.com offers several second mortgage programs designed for home owners with derogatory credit issues. Whether it’s cash out for debt consolidation, student loan payments or just to take a well deserved vacation, Lifestyle-Mortgage.com offers great terms and several second mortgage options to clients in Memphis, Tennessee and beyond.
The benefits of taking advantage of your homes equity via a second mortgage, or Home Equity Loan, to resolve a new or preexisting bad credit issues can be numerous. A Lifestyle-Mortgage.com professional loan counselor would love the opportunity to speak with you about all of your options and how one of our bad credit second mortgage programs can assist you in addressing any particular issue you might be experiencing. Complete our online Quick Apply application today!
Bad Credit Documentation
Copy of Social Security Card
Copy of Drivers License
90 Days Banks Statements, all Accounts, all Pages
(If doing a bank statement loan, include 12 consecutive months)
30 Days Pay Stubs
Last Quarterly Statement for Investment Accounts/401K
Signed Letter of Credit Explanation (IF DEROGATORY)
Copy of Bankruptcy Papers, all Pages and Discharge
Business Tax Returns (Self Employed Only)
Copy of Business License (Self Employed Only)
Year to Date P L statement – Signed (Self Employed Only)
Last 12 Months Canceled Checks for Rent or Mortgage (Privately Held rent or prior mortgage)
Child Support Order (for those using child support to qualify)
Benefit Award Letter (For those using a Retirement or Disability income to qualify)
Hard Money Loan
A hard money home loan may fit your needs if you find yourself in any in a money pinch and unable to qualify for standard loan products. These loans are especially good for those who need to close in days not weeks or need to rescue a home foreclosure.
If you’re facing hard luck in Memphis, TN or anywhere else, a Hard Money loan may be the quick fix for you! Our hard money products offer borrowers Great Flexibility with No Credit Checks (in most instances), No Documentation in almost all instances, and no appraisal requirement in most instances.
We lend on the property only. Our maximum TLTV (total loan to value) offered is 65% with rates starting as low as 9.9% on an ARM product line! If you’re looking for hard money lenders, you’ve come to the right place. We’ve helped many home owners and home buyers save a home facing foreclosure or purchase a home in a matter of days.
Call today for a no-cost review of your situation to identify exactly what documentation you’ll need to get your fast closing Hard Money mortgage in process. Complete our online Quick Apply application today!