Bad Credit Home Loans in Whiteash Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Whiteash 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 Whiteash 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
Whiteash was a village in Williamson County, Illinois, United States. The population was 268 at the 2000 census, and dropped to 248 in the 2010 census. This village dissolved in 2014.[1]
Whiteash began as a coal mining community around the Chicago and Marion Coal Company’s mine organized by Charles A. Gent of nearby Marion, Illinois. In 1903, Gent bought the site of the village from Samuel K. Casey, publisher of the Egyptian Press newspaper also of Marion. He in turn had inherited it from his grandfather George W. Binkley who had homesteaded the land and entered it with the government in 1837. Gent platted the village on July 3, 1903 in the northwest corner of Section 31, Township 8 South, Range 3 East of the Third Principal Meridian, also known as Lake Creek Precinct. He named the town Whiteash after the trade name he used for the coal his mine produced.