Do you happen to have “less than perfect credit” or “bad credit”? Are you looking for a mortgage company for people with bad credit?
There are many homeowners (and potential homeowners) that don’t have great credit and locating a mortgage company for people with bad credit might seem impossible. Just because you have less than perfect or bad credit does not mean you can not obtain a new mortgage.
Below you’ll learn;
- The importance of knowing what’s in your credit report
- The value of being realistic
- How to avoid scams
- Loan programs to consider
My team and I are here to help. We have an A+ rating with the Better Business Bureau, and have nearly 50 “five-star” ratings on various review sites like Zillow. We can’t help everyone but we can help some.
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.
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 16 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.
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
I’m sure you’ve heard this before, but it cannot be said enough; be careful and watch out for scams. They are everywhere and the best thing you can do to protect yourself is to take the time to do some research on the mortgage company and Loan Officer.
Not every lender is a mortgage company for people with bad credit so be sure to let the Loan Officer know when you request a quote.
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.
Use reputable websites like the Better Business Bureau, Zillow and the NMLS to verify the reputation of the company and the Loan Officer you’re speaking with.
And something to help you during your search is this; make sure you ask questions. Especially if you have concerns.
If the Loan Officer is unwilling to answer your questions or keeps changing the answer then that’s a good sign to go look for another company to work with. There are plenty of mortgage companies that can help someone with bad credit, you just have to spend sometime looking for the good ones.
Loan Programs To Consider
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.
There are also some conventional options as well so it’s good to discuss with your Loan Officer what’s available. If you have a 640 credit score but lot’s of equity, there’s a good chance you a conforming loan might be a better fit for you.
If you have a 640 and very little equity then the FHA program is probably going to be the best program for you.
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.