Bad Credit Home Loans in Bureau Junction Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Bureau Junction 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 Bureau Junction 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
Bureau Junction, usually called Bureau, is a village in Bureau County, Illinois, United States. The population was 322 at the 2010 census.[3] The village name is shown as both “Bureau Junction”[4] and “Bureau” on federal maps,[5] and is commonly called “Bureau”, including by phone companies[6] and the United States Post Office.[7] It is part of the Ottawa–Streator Micropolitan Statistical Area. Bureau Junction was the point where the Rock Island Line railroad’s branch line to Peoria split. Track west and south of Bureau is operated by Iowa Interstate, while tracks east to Chicago were formerly operated by CSX but are currently leased to Iowa Interstate.
The village is named for Michel or Pierre Bureau. Their original surname was probably Belleau, but local aboriginals may have had difficulty pronouncing the “l” sound. One or both of the brothers ran a trading post near where Big Bureau Creek empties into the Illinois River from 1776 until 1780 or 1790.[8][9] A man named Buero, of mixed French and Native American descent, and possibly a descendant of one of the earlier Bureau brothers, was operating in this area as a fur trader in 1821.[10]