Bad Credit Home Loans in Verona Illinois

We specialize in loans other banks turn down

If you have been turned down for a conventional mortgage due to the property type, source of income, or a credit hiccup we may be able to help. Call us today at 888-882-1058 or submit an online request. We offer program’s designed to help borrowers who have had a previous bankruptcy or foreclosure. We also have a loan program for self-employed borrowers.

The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Verona 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.

If you have a poor credit score a larger down payment may be required. In most cases gift funds are allowed.

bad credit home loan

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Candidates For Verona 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)

Poor Credit Home Loan

Apply even with Poor Credit 888-882-1058

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At Smart Mortgage Centers creditworthiness is not determined exclusively by credit scores. A couple of missing credit card payments does not mean that a consumer is doomed to receive double-digit interest rates. The only way to know where one stands is to apply for the loan and speak to a Smart Mortgage Centers professional.

Verona (Italian pronunciation: [veˈroːna] ( listen); Venetian: Verona or Veròna) is a city on the Adige river in Veneto, Italy, with approximately 257,000 inhabitants. It is one of the seven provincial capitals of the region. It is the second largest city municipality in the region and the third largest in northeast Italy. The metropolitan area of Verona covers an area of 1,426 km2 (550.58 sq mi) and has a population of 714,274 inhabitants.[1] It is one of the main tourist destinations in northern Italy, owing to its artistic heritage and several annual fairs, shows, and operas, such as the lyrical season in the Arena, the ancient amphitheater built by the Romans.