Bad Credit Home Loans in Kildeer Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Kildeer 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 Kildeer 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
Kildeer is a village in southwestern Lake County, Illinois, United States, and a North Shore suburb of Chicago. The population was 3,968 at the 2010 census.[3] It has limited development to custom homes on large lots, and has worked to preserve natural features and open space.
This area was largely rural and made up of farms and undeveloped lands until after World War II. Increased population and pent-up demand for housing resulted in new suburban development outside many major cities, aided by federal investment in highways that eased commuting to work. Lake County began to prepare by paving its roads and improving some. The Kildeer area began to attract persons who wanted to live a relatively rural life. In 1951 Quentin Road was realigned, removing the four right-angle turns, and substituting a smooth curve north from Rand Road. In 1952 its entire length was paved.