Bad Credit Home Loans in Peoria Heights Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Peoria Heights 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 Peoria Heights 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
Peoria Heights is a village lying almost entirely in Peoria County in the U.S. state of Illinois. The population was 6,156 at the 2010 census, down from 6,635 in 2000. Peoria Heights is a suburb of Peoria and is surrounded by the city except for its eastern boundary on Peoria Lake, a relatively wider section of the Illinois River. It is part of the Peoria, Illinois Metropolitan Statistical Area.
According to the 2010 census, Peoria Heights has a total area of 6.969 square miles (18.05 km2), of which 2.65 square miles (6.86 km2) (or 38.03%) is land and 4.319 square miles (11.19 km2) (or 61.97%) is water.[4] That most of the village is water is due to the fact that most of Upper Peoria Lake lies within its boundaries;[5] this can be seen on official state maps.[6]