Bad Credit Home Loans in Genoa Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Genoa 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 Genoa 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
Genoa (/ˈdʒɛnoʊ.ə/ JEN-oh-ə; Italian: Genova [ˈdʒɛːnova] ( listen); Ligurian: Zêna [ˈzeːna]; English, historically, and Latin: Genua) is the capital of the Italian region of Liguria and the sixth-largest city in Italy. In 2015, 594,733 people lived within the city’s administrative limits.[1] As of the 2011 Italian census, the Province of Genoa, which in 2015 became the Metropolitan City of Genoa,[2] counted 855,834 resident persons.[3] Over 1.5 million people live in the wider metropolitan area stretching along the Italian Riviera.[4]
Located on the Gulf of Genoa in the Ligurian Sea, Genoa has historically been one of the most important ports on the Mediterranean: it is currently the busiest in Italy and in the Mediterranean Sea and twelfth-busiest in the European Union.[5][6] Genoa has been nicknamed la Superba (“the proud one”) due to its glorious past and impressive landmarks.[7] Part of the old town of Genoa was inscribed on the World Heritage List (UNESCO) in 2006 as Genoa: Le Strade Nuove and the system of the Palazzi dei Rolli. The city’s rich cultural history in art, music and cuisine allowed it to become the 2004 European Capital of Culture. It is the birthplace of Christopher Columbus, Andrea Doria, Niccolò Paganini, Giuseppe Mazzini, Renzo Piano and Grimaldo Canella, founder of the House of Grimaldi, among others.