Bad Credit Home Loans in Justice Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Justice 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 Justice 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
Justice is the legal or philosophical theory by which fairness is administered.[2] As with most philosophically-driven disciplines, the concept of justice differs in every culture. An early theory of justice was set out by the Ancient Greek philosopher Plato in his work The Republic. Advocates of divine command theory say that justice issues from God. In the 17th century, theorists like John Locke advocated natural rights as a derivative of justice.[3] Thinkers in the social contract tradition state that justice is derived from the mutual agreement of everyone concerned. In the 19th century, utilitarian thinkers including John Stuart Mill said that justice is what has the best consequences. Theories of distributive justice concern what is distributed, between whom they are to be distributed, and what is the proper distribution. Egalitarians state that justice can only exist within the coordinates of equality. John Rawls used a theory of social contract to show that justice, and especially distributive justice, is a form of fairness. Property rights theorists (like Robert Nozick) take a deontological view of distributive justice and state that property rights-based justice maximizes the overall wealth of an economic system. Theories of retributive justice are concerned with punishment for wrongdoing. Restorative justice (also sometimes called “reparative justice”) is an approach to justice that focuses on restoring what is good, and necessarily focuses on the needs of victims and offenders.[4]