Bad Credit Home Loans in Port Barrington Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Port Barrington 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 Port Barrington 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
Port Barrington is a village in Lake and McHenry counties in the U.S. state of Illinois. It was formerly known as Fox River Valley Gardens. Fox River Valley Gardens’ village board voted 4-3 in September 2002 to change the community’s long name to Port Barrington. There was a fight over the town name when the new Riverwalk subdivision homeowners were sold homes with a Barrington (60010) village name and zip code. In 2002, when the town announced that it would change to “Fox River Valley Gardens”, the new home values fell significantly and immediately. Some people trying to sell their homes at the time found themselves “underwater” (selling at a loss). This prompted citizens in the Riverwalk section of town to express their objection to what appeared to be a “bait and switch” in the town name and zip code as it affected home value. There were several tense town meetings where legal action was being considered by the new residents of the village. The population was 1,517 at the 2010 census,[3] up from 788 in 2000.
The town is a very active community. Winter has people snowmobiling, cross country skiing, ice fishing and ice skating on village trails and lakes. In the summer, cyclists, runners, fishermen and boaters come from all over the area to this town. The Broken Oar and the Lake County Marina are the two largest attractions.