Bad Credit Home Loans in Gillespie Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Gillespie 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 Gillespie 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
Gillespie (/ɡɪˈlɛspi/) is both a masculine given name, and a surname in the English language. The given name is an Anglicised form of the Gaelic Gille Easbaig (also rendered Gilleasbaig), meaning “bishop’s servant”.[1] The surname Gillespie is an Anglicised form of the Scottish Gaelic Mac Gille Easbuig, and the Irish Mac Giolla Easpaig, both of which mean “servant of the bishop”.[2] The given name itself is derived from a word of Latin origin.[3] Specifically, the Old Irish epscop being derived from the Latin episcopus.[4] An early example of the name in Scotland occurs in a charter dated 1175–1199, recording a certain “Ewano filio Gillaspeck”.[3][5] In Ireland, a family bearing the surname occupied the office of toísech of Clann Aílebra in the late twelfth century.[6] In 1172, for example, the toísech was slain by Donn Slébe Ua hEochada, King of Ulster. This slain Mac Gilla Espuic may be identical to a certain Gilla Óengusa mac Gilla Espuic, rechtaire of the Monaig of Ulster, who is earlier recorded in the king’s service.[7] Whatever the case, a later family bearing the surname appears on record as erenaghs of Kilraine in County Donegal. During the sixteenth- and seventeenth-centuries in Ireland, the surname is most common in Ulster.[6] During the nineteenth century in Ireland, the surname was most numerous in the counties of Antrim, Donegal, Armagh, and Tyrone.[8] Scottish Gaelic forms of the surname include GillEasbuig,[9] and GillEasbaig.[10]