Bad Credit Home Loans in Alhambra Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Alhambra 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 Alhambra 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
The Alhambra (/ælˈhæmbrə/; Spanish: [aˈlambɾa]; Arabic: الْحَمْرَاء [ʔælħæmˈɾˠɑːʔ], Al-Ḥamrā, lit. “The Red One”,[Note 1][Note 2] the complete Arabic form of which was Qalat Al-Hamra)[Note 3] is a palace and fortress complex located in Granada, Andalusia, Spain. It was originally constructed as a small fortress in AD 889 on the remains of Roman fortifications, and then largely ignored until its ruins were renovated and rebuilt in the mid-13th century by the Nasrid emir Mohammed ben Al-Ahmar of the Emirate of Granada, who built its current palace and walls. It was converted into a royal palace in 1333 by Yusuf I, Sultan of Granada.[1] After the conclusion of the Christian Reconquista in 1492, the site became the Royal Court of Ferdinand and Isabella (where Christopher Columbus received royal endorsement for his expedition), and the palaces were partially altered in the Renaissance style. In 1526 Charles I & V commissioned a new Renaissance palace better befitting the Holy Roman Emperor in the revolutionary Mannerist style influenced by Humanist philosophy in direct juxtaposition with the Nasrid Andalusian architecture, but it was ultimately never completed due to Morisco rebellions in Granada.