Bad Credit Home Loans in Scott AFB Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Scott AFB 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 Scott AFB 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
Scott Air Force Base (IATA: BLV, ICAO: KBLV, FAA LID: BLV) is a United States Air Force base in St. Clair County, Illinois, near Belleville and O’Fallon, 25 miles East of downtown St. Louis. Scott Field was one of thirty-two Air Service training camps established after the United States entered World War I in April 1917.[1] It is part of the Air Mobility Command (AMC), and is also the headquarters of the U.S. Transportation Command, a Unified Combatant Command that coordinates transportation across all the services.
The base is operated by the 375th Air Mobility Wing (375 AMW) and is also home to the Air Force Reserve Command’s 932d Airlift Wing (932 AW) and the Illinois Air National Guard’s 126th Air Refueling Wing (126 ARW), the latter two units being operationally gained by AMC.