Bad Credit Home Loans in Wyanet Illinois
The bad credit mortgage is often called a non-prime mortgage or alternative lending and is offered to Wyanet 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 Wyanet 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
Wyanet is a village in Bureau County, Illinois, United States. The population was 991 at the 2010 census. It is part of the Ottawa–Streator Micropolitan Statistical Area.
Wyanet’s history dates back to 1821; it was officially plated in 1854 and incorporated in 1857. The community has had several names since its beginning. In 1821 the settlement was first called “Center”. Named by Bulbona an Indian trader. In 1837 the Village officially started to sprout its roots due to the area known as “Pond Creek”. Named for the Creek at the South edge of town where Ellis Mercer built a saw mill and Amos Leonard built the first flour mill. The first railroad, the Chicago Rock Island & Pacific was built here in 1853. At this time the name was changed to “Kingston” in honor of the land donors Henry and Mary King. The Chicago, Burlington, Quincy Railroad gave the Village its current name, Wyanet, when they completed their rail line in 1855.