 |
Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan
I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues.
They got into the house with ZERO down payment, and only had to bring $600 for the closing costs. Their situation was pretty bad,
I'm talking about a bankruptcy 2 years ago, thousands of dollars in outstanding collections, charge-offs and debt to income ratio
of 49%. By the way, we left all of their outstanding charge-offs and collections open which means they didn't have to pay any of
them off! So many think they won't be able to qualify for a mortgage loan. Many will keep thinking they can't qualify until they read this article.
My name is Nick Graziano and I have been employed as a Loan Officer for 5 years. I have experience originating conventional
mortgage loans as well as sub-prime (non-conventional) residential mortgage loans. Many of the clients that I deal with
have great credit (and know it) and have no problem getting a loan but then there are those with credit problems (and they know
it too). The ones with great credit are the ones that are easy to close, get the best rates and all with minimal time involved on the part of myself.
But, this article is for those with credit problems, low income and those who cannot afford a down payment. I am going to
show you how to qualify for a loan with ZERO down payment, and the only out of pocket expense will be less than $1,000 ( if any
at all) to cover some of the closing costs. This is just an example of one particular loan program that I use but there are
numerous others out there. I picked this loan program because it allows 100% financing down to a 575 credit score
I see it on a daily basis.
Everyone wants to own a home and those with credit problems are calling every mortgage company in the phone book and applying
on every mortgage website out there. (And there are many out there). Only to find out later that every time a mortgage company
pulls their credit, their credit score dropped a few points, or that the particular lender doesn't originate the type of loan that you need. That is frustrating.
Step by Step
Here is where I show you how to qualify yourself for a zero down loan.
1. The first thing you need is your tri-merge credit score. I would be more that happy to suggest a few places on the internet
that you could go to get your credit score but I don't want this article to seem like an advertisement. So, the best thing to do
is to do a search on yahoo.com for terms like "free credit reports", or
"tri-merge credit report". Just make sure that you end up pulling a "tri-merge" credit report on yourself. A tri-merged credit
report pulls your credit profiles from the 3 major credit reporting companies and merges it into 1 report. The nice thing
about pulling your credit yourself is that it will NOT affect your credit score. Bookmark this page while you go get a copy of
your credit report and then come back to see the additional steps.
2. What is your credit score? Most mortgage lenders will use the middle of the three scores. Example: Your credit scores are
576, 525, 599. In this case you would use the 576 credit score since it is not the lowest score and it is not the highest.
3. Is your middle credit score at least 575? If so, congratulations and move on to the next step. If your middle
score is less than 575 you have some homework to do. You can either sign up with a credit repair company ("search yahoo.com for credit repair") to try and remove some derogatory items on your credit
which will raise your credit score OR you can try to acquire some credit to help re-establish your credit worthiness. The easiest
way to re-establish your credit is by either getting a car loan or credit card designed to help re-establish your credit. Again
search yahoo.com for "credit cards to re-establish credit"
4. Do you have a bankruptcy or foreclosure in your past? Has it been 2 years since it was discharged? If yes, move on to the next
step! If not, unfortunately in most cases your bankruptcy or foreclosure will need to be discharged at least 2 years or you will need to have at least 5% down payment.
5. You will need to document 24 months of recent mortgage or rental history. If you rent from a property management company we
will need a Verification Of Rent completed. The form will be supplied by your mortgage lender or broker. If you rent from a
private landlord, you will need 24 months cancelled checks/ or money order receipts with no payments over 30 days late. Sorry,
you cannot prove your rental history if you pay your landlord cash every month, unless they are a property management company.
If you are unable to document your rental history there is a way around it. Get your credit report and look for the following: Do
you have an active credit line on your credit report that has been open for at least 24 months? Has this credit line had any activity in the last 6 months? If so, move to the next step.
6. Look at your credit report. Do you have a credit line that has a 12 month history reporting? If so and as long as you have
no more that 2x30 day late payments then move on to the next step.
7. Look at your credit report again. Do any of your credit lines have a high limit of at least $3,000. If so, move to the next step.
8. Now take one more look at your credit report. You will need 1 more additional open credit line reporting on your credit
report. (It does not matter how long it has been open or how much the credit line is for).
Well, congrats! You made it this far which means that your credit might qualify for a Zero Down Payment Loan. The loan
program you qualified for is subject to change and is subject to additional conditions. This article should not be construed as an
advertisement to lend. These are the steps that I go through when trying to pre-qualify a client that has credit problems. There
are many more factors to determine so please discuss this with a qualified mortgage professional.
You are probably asking yourself what you are supposed to do with the information that was given to you in this article. The
first thing is to contact a few mortgage companies. Ask them if they have any zero down loan programs that will go down to a 575
credit score, or whatever your credit score is. Remember, you will need at least a 575 credit score to qualify for this
particular loan program. Also, in order to minimize your out of pocket expense, ask your mortgage professional if the property
seller is allowed to pay 6% of the purchase price towards closing costs. If so, you will need to remember to negotiate that into your purchase contract when you make an offer on a house.
About The Author: Nick Graziano
 MORE RESOURCES updated Thu. February / 09 / 2012
|
AgedLeadStore.com to Add 1100000 Aged Mortgage Refinance LeadsMiddle East North Africa Financial NetworkCOM, January 26, 2012 ) Baltimore, MD AgedLeadStore.com is increasing its value for its customers by adding 1.1 million aged Mortgage Refinance Leads in February. This is important as many people depend upon their ability to refinance to make progress ... |
|
New HARP Could Help Up to 6.7 MillionNASDAQOther changes to the program were designed to make it easier for homeowners with private mortgage insurance (PMI) to refinance or to obtain a HARP mortgage refinance with a lender other than their current mortgage servicer. In addition, new limits were ...and more » |
|
Boehner On Refi Plan: Bad Idea, Obama!Mortgageorbby MortgageOrb.com on Thursday 02 February 2012 Any hope for bipartisan support of President Obama's mortgage refinance proposal was squashed by House Speaker John Boehner, who dismissed the new initiative as a continuation of failed policies.and more » |
Google News
|
|
|
RELATED MORTGAGE AND REFINANCING ARTICLES:
Mortgage Elimination- A Horrible and Sure Way to Lose Your Home to Foreclosure
"Own your home free and clear in 3 to 4 months. Note paid
in full!" How does this statement sound to you? Does it
bring out a sentiment of grand larceny or does it peek your
interest as a means to quickly and legally increase your
personal net worth? Would it be moral to cancel a debt you
made in such an easy and unfathomable manner? Most
importantly, if you were behind on your mortgage would you
pay someone $3,000 to perform this elimination service for
you? Unfortunately, the answer for many homeowners is "Yes".
Bad Credit Mortgage Loans - How To Get Approved
Persistence is the key working toward getting approved for
a bad credit mortgage loan. There are many factors that
you, as a borrower have control over that can help you get
approved faster and easier.
HELOCs and Second Mortgages: Which One Should I Choose?
Whether you need some extra cash to pay off some credit
card debts, or to make some home improvements, home equity
lines of credit or second mortgages can be great ways to
get started. Many people looking to borrow money often opt
for home equity line of credit, or HELOCs, for short.
Refinance Your Second Mortgage
A 2nd mortgage is a secured loan on your property, with your home serving as collateral. Depending on the
particular terms of your second mortgage, you could be able to refinance if you wish to reduce your monthly payments or are in need of extra cash.
Zero Down Payment Mortgage - Can It Be Done?
"I've been renting for years now; I've always paid my rent
on time. I'll start a savings account soon, so I can buy a
house": sound familiar? How much is in that savings account
now? Just as I thought, not enough, you went on vacation,
found a car you had to have, or WOW; look at the flat panel
T.
What is a Fixed Rate Mortgage?
As the term implies, with a fixed rate mortgage the
mortgage rate is fixed for a set period of time, so no
matter what movements occur in the lender's standard
variable mortgage rate, the borrower's arrangement is fixed
and, therefore, so are the monthly fixed rate mortgage
payments. A fixed rate mortgage would suit someone who likes
to know where they stand.
Home Equity Loan - When Does Refinancing Make Sense?
For the last two years, interest rates have been much lower
than anytime during the last thirty years. This has
resulted in an unprecedented boom in real estate sales,
home refinancing and home equity lending, as borrowers try
to take advantage of these rates for the long term.
For Mortgage-Refinance Help, Get the Best Mortgage Professional, Not a Bank Loan Officer
When you need a mortgage -- either because you are buying,
refinancing, taking out equity or getting into investment
real estate, you need a good mortgage professional. Now,
you may be tempted to go to your local savings and loan, as
they may promise lower fees or zero costs.
Imagine Cutting Over $8,000 Off Your Mortgage This Year
I once helped a customer cut over $700 off his monthly
mortgage payment. That's right, over $8,000 each year and
over $40,000 in just five years.
Home Mortgage Rate Shopping - Why Some Shoppers Give Up And Others Don't
About 29% of current homeowners and a much larger percent
of consumers with income levels above $50,000 feel it best
to stay as far away from offers to finance or refinancing
their home as possible. And this seemly for good reason.
Good FICO Credit Score? Tips to Getting the Most Out of Your Home Mortgage Loan With Good Credit
Sometimes so much is talked about how to solve the problem
of having bad credit, but what about when you have an
excellent credit rating? Good credit is considered to be a
credit score of 650 or higher. How can you get the best
interest rate and loan terms to make your good credit
history work for you? Even with excellent credit, you have
to be careful not to get talked into a loan that may not be
the best one you could qualify for.
Mortgage Debt Elimination
The prospect of mortgage debt elimination is something that
many Americans are dealing with today. If you are concerned
about your current debt situation, constantly trying to
eliminate debt from your life, you are not alone.
Why a Mortgage Professional Beats a Banker Every Time -- The Story Tells It All
The best way to explain why a mortgage professional is
always better than a banker is to use an anecdote. My
parents lived in the house I grew up in for 35 years, so it
was finally time to move.
Fixed Rate Mortgage Loans - Understand the Pros and Cons of the Fixed Rate Mortgage
There are many benefits and drawbacks to consider when
deciding if a fixed rate mortgage is right for you. It is
important to look at all options when it comes to something
as important as getting a mortgage for your new home.
Stock Market, Bonds, Deposit Account, Cash, Equities, Unit Trusts - Few, Just Few of the Ways of Saving
Man has been known for continually simplifying things in
his own interest. First he devised mortgages then several
sub categories under it like buy to let mortgage, council
right to buy, reverse mortgage.
Bad Credit Home Loans - Pre-Approval is Still Possible With Adverse Credit History
If you are among the millions with less than perfect
credit, there are many sources available to you in
obtaining a mortgage. Lenders that specialize in mortgages
for those with bad credit are competing for your business.
Why Refinance Back into a 30-Year Loan?
One of the biggest reasons homeowners refinance their
mortgage is to obtain a lower interest rate and lower
monthly payments. By refinancing, the borrower pays off
their existing mortgage and replaces it with a new one.
Mortgage Advice
In the US today more households have mortgages than ever before. In fact the chance of you having or knowing someone who is paying off their mortgage is greater than 50%.
Shopping for a Mortgage, Avoid Three Common Mistakes
Buying a home or refinancing one is perhaps the largest
financial transaction you will ever make in your life, so
you want to be sure to avoid any mistakes that may cost you
in the long run. When you are deciding on a mortgage, you
certainly don't want to make your decision by flipping a
coin.
Home Equity - Let the Market Eliminate Your Private Mortgage Insurance
In decades past, most people who were interested in
obtaining a home loan were required to put down at least
20% of the purchase price. Those days are gone, and as home
prices have risen faster than incomes, the average down
payment required by lenders has dropped.
|
used office furnishings-supplies-equipment-desks-cubicles-service-counters for
sale in Akron Ohio
Die cast model cars for sale in Akron Ohio
used cars for sale in Akron Ohio
unfurnished homes for
rent in Akron Ohio
| first second
ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers
quotes florida houston gmac washington interest only 2nd software debt consolidation
reverse senior equity texas maryland options lending bad credit
option one ameriquest chase first banks emc residential california miami dallas est branch marketing
home company commercial yahoo online bad credit low credit no credit |
|
