Less Than Perfect Credit

Do you happen to have “less than perfect credit” or “bad credit”?

There are many homeowners or potential homeowners that don’t have great credit and locating a new mortgage might seem impossible. Just because you have less than perfect or bad credit does not mean you can not obtain a new mortgage.

There are many loan programs available to those that have late payments, collection accounts, and/or judgments and liens. We work with all types of clients and various situations and know how to navigate the mortgage landscape to find our client’s solutions.

Less than perfect credit score

Knowing What’s In Your Credit:

Understanding your credit is an important part of the process and we’ll take the time to review your credit report and answer your question you may have. Having looked at thousands of credit reports over the years we have the experience and knowledge to help our clients get on a better path with their credit history. Knowing what is in your credit will also allow you to fully understand your credit profile and long term that can save you thousands of dollars.

Information That Is In Your Credit Report:

Besides the obvious stuff like your name, address, social security number, and date of birth; here is the important information that is found in your credit report:

  • Reason codes. Reason codes are statements from the credit bureaus as to why your score is not perfect. FYI – in 15 plus years of looking at credit reports I have never once seen a perfect credit score. If someone actually has one I’d love to know who it is!
  • Payment history for all your credit cards, car loans, student loans, and more.
  • If you’ve had any collection accounts, charge-offs, tax liens, bankruptcies, or foreclosures.
  • Your previous address’s and if applicable your previous name(s).
  • The number of inquiries you’ve had in the last twenty-four months.

Knowing what’s reported on your credit report will help you better understand what mortgage companies are looking at after they pull your credit report. if you have any questions or want to know how to improve your credit score be sure to talk about that with your Loan Officer. He or she should be willing and open to helping you improve your overall credit score.

FHA Mortgage Rates

Jumbo Mortgage Rates

Being Realistic

The key for someone in this situation is to be realistic and only work with mortgage companies that have a stellar reputation. Before you even consider getting a quote from a mortgage company go to the Better Business Bureau (BBB) and Business Consumers Alliance (BCA) websites to review mortgage companies. If a mortgage company does not have a high rating and/or they are not even listed I would be extremely careful working with them.

Be Careful and Watch Out For Scams

There are a lot of people that will try and take advantage of your current situation so it’s super important you only work with a reputable mortgage company. Some websites offer online reviews but keep in mind those reviews may not be real so use your best judgment when it comes to reading them.

FHA Might Be An Option

When considering a new mortgage be realistic and understand that the best-advertised mortgage rates that some lenders put out there are probably not going to be the terms you receive. Be open to an FHA mortgage even though you may not like paying mortgage insurance. FHA mortgage rates w/ the mortgage insurance premium added in are generally more attractive to people with bad credit when compared to conforming loans (especially those seeking cash out on a refinance transaction).

Benefits Of A FHA Home Loan:

Here are the main benefits of an FHA home loan and this applies to both refinance transactions and those looking to purchase a home.

  • FHA home loan is great for those with credit scores below 700.
  • The FHA home loan program allows for only 3.5% down (or 3.5% equity if it’s a refinance).
  • FHA has one of the best refinance and rehab loans on the market.

Whatever your home loan needs are make sure to keep an open dialogue with your Loan Officer. There are some people with excellent credit who could really benefit from doing an FHA home loan. As they say; the more you know the better off you’ll be.

JB Mortgage Capital, Inc.

If you would like to discuss your current situation and/or obtain a no-cost – no-obligation quote then feel free to contact us directly at 1-800-550-5538. We offer our unique one-on-one personal service along with our low rates. We’re happy to answer any questions you may have and we’ll work hard to earn your business. We offer a streamlined process and we have a top rating with the BBB and BCA.

Loan Officer Kevin O'Connor

Loan Officer Kevin O'Connor

He is the founder and main contributor of koloans.com. He has over 16 years of experience as a Mortgage Loan Originator (MLO) and is fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau, Google, and Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings, and exceptional service. CA DRE #01499872 and NMLS # 247447

More Homeowner Resources

Homes in Sacramento

Check Today's Rates

Check out today's mortgage rates and use our online mortgage calculator.

Family using the California DRE website

Conforming Loan Limits

Look up your conforming loan limit and review your options. All 58 counties listed.

FHA 203(k) loan in California

California Homebuyer

The complete online homebuyer guide to getting a mortgage including homebuyer tips.