Bad Credit Mortgage Loans - Easier To Get Approved With A
Bankruptcy or Foreclosure
(PRWEB) April 14, 2005 -- A few years ago, if you had a recent
bankruptcy or foreclosure, finding someone to approve you
for a home loan was almost impossible. Nowadays, not only
can you find someone to finance you, but you should be able
to get approved at a decent interest rate as well. Get a loan
online.
In order to qualify for a home loan after a recent bankruptcy
or foreclosure, you should have a credit score of 580-600
or higher. With a credit lone score of at least 600, depending
on your situation, you could be able to get 100% financing
and an interest rate of 6.5-7% depending on your income verification.
If you have even 5% to use as a down payment, you may be able
to get a an approval with a lower credit score than a 580.
The key to getting approved, even with recent major creidit
problems, is to make your current payments on time and be
able to have good income verification.
There are major lenders now, who specialize in lone financing
people with recent credit problems and difficult situations.
One of the techniques lenders use today, to make these types
of loans work with 100% financing, is to do what is called
an 80/20 combo loan. That is where you purchase the home with
a first mortgage, which is 80% of the loan, and a second mortgage
which is 20% of the loan. The 80% laon will usually be a lower
interest rate and the second mortgage will usually be higher.
It could be as high as 10-12%.
Of course, with bad credit, getting approved for a
refinance loan is going to be much easier than getting approved
for a new home loan. If you can get approved for a new home
loan, sometimes it is good to refinance within 6 months to
a year after your purchase and lock in a lower overall rate
and payment. With bankruptcies and foreclosures on the rise,
lenders are modifying their programs to continue to cater
to the needs of the borrowers.
Bankruptcies and Foreclosures are on the rise and more and
more people everyday, with scarred creditt histories are wanting
a new home loan, equity loan or to refinance their existing
home.
For more information visit us at http://www.abcloanguide.com/
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