Bad Credit Home Loans in Glendale Heights Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Glendale Heights homebuyers with low credit ratings. Due to the low credit rating, conventional mortgages are not offered because the lender sees this as the homebuyer having a larger-than-average risk of not following through with the terms of the loan. Lenders often charge higher interest rates on non-prime mortgages in order to compensate for the higher loan default risk that they are taking.
Candidates For Glendale Heights Bad Credit Mortgages
Some people with poor credit profiles or a small down payment may have trouble borrowing from conventional lenders. One alternative to consider is obtaining a Federal Housing Administration loan or a non prime mortgage. These loans have liberal underwriting requirements which allow people to purchase a home with a poor credit score and as little as a 3% down-payment. Non Prime and FHA borrowers can qualify with credit scores between 500 and 620. Veterans may want to explore low-cost VA loan opportunities.
Most borrowers use a non prime mortgage with the home buyer planning on refinancing at some point into a more appealing loan with a lower rate. However if the homeowner still has outstanding credit issues or the mortgage market tightens up then they might not be able to refinance. The higher rate can cause a prohibitively higher monthly payment, & an inability to refinance can mean a loss of home ownership.
The below items are the general guidelines that can be used as a rough rule of thumb when determining whether a consumer may be a candidate for a non prime, FHA or VA loan:
- 1 Day out of Foreclosure, Bankruptcy, short sale, deed-in-lieu.
- Loans up to $1 million
- Credit scores down to 500
- Up to 100% LTV
- DTI up to 50% considered
- Owner-occupied, 2nd homes, and investment properties
- Non-warrantable condos considered
- Jumbo loans down to 500 score
- 5/1 ARM or 8 – 30-year fixed
- No pre-payment penalty for owner-occ and 2nd homes
- No active tradelines OK with housing history
- SFRs, townhomes, condos, 2-4 units
- Seller concessions to 6% (2% for investment)
Apply even with Poor Credit 888-882-1058
Glendale Heights is a village in DuPage County, Illinois, United States. The population was 34,208 at the 2010 census. It is best known nationally as the hometown of Smashing Pumpkins founder Billy Corgan, but known more locally for its ethnically diverse population. The town elected Dupage County’s first Asian mayor in 1995.[4]
Glendale Heights was a small farming area served by the Glen Ellyn post office up until the 1950s, with a population of just 104 in 1959.[5] Midland Enterprises ran by Charles and Harold Reskin started building houses in Glendale Heights in 1958. The Reskins bought two farms on Glen Ellyn Road north of North Avenue. Houses were first built on Glen Ellyn Road and Larry Lane near Fullerton Avenue. On June 16, 1959, a petition was filed and on July 13, the village became incorporated. The first election was held later on that summer on August 2.