Bad Credit Home Loans in Silvis Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Silvis 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 Silvis 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
Silvis is a city in Rock Island County, Illinois, United States. It is part of a larger metropolitan area known as the Quad Cities. The Quad Cities Metropolitan Area is situated across four counties in Illinois and Iowa. Silvis is the first community one encounters when entering the Quad Cities from the east on Interstate 88. Four miles from the intersection of Interstate 80 and Interstate 88, Chicago, Des Moines and Omaha are just a few hours away.[3]
As of 2014, the population is: 7,604.[5] 2,984 households, and 1,939 families residing in the city. The population density was 1,993.8 people per square mile (768.9/km²). There were 3,135 housing units at an average density of 859.9 per square mile (331.6/km²). The racial makeup of the city was 86.09% White, 3.45% African American, 0.47% Native American, 0.81% Asian, 6.51% from other races, and 2.67% from two or more races. Hispanic or Latino of any race were 14.36% of the population.