Bad Credit Home Loans in Milan Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Milan 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 Milan 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
Milan (/mɪˈlæn, mɪˈlɑːn/;[3] Italian: Milano [miˈlaːno] ( listen); Lombard: Milan [miˈlãː] (Milanese variant))[4][5] is a city in northern Italy, capital of Lombardy, and the second-most populous city in Italy after Rome, with the city proper having a population of 1,369,466 while its province-level municipality has a population of 3,238,665.[6] Its continuously built-up urban area (that stretches beyond the boundaries of the Metropolitan City of Milan) has a population estimated to be about 5,270,000 over 1,891 square kilometres (730 square miles).[7] The wider Milan metropolitan area, known as Greater Milan, is a polycentric metropolitan region that extends over central Lombardy and eastern Piedmont and which counts an estimated total population of 7.5 million, making it by far the largest metropolitan area in Italy.[8][9][10][11][12] Milan served as capital of the Western Roman Empire from 286 to 402 and the Duchy of Milan during the middle and early modern age.