Home Loan Options for Borrowers with Bad Credit

In today’s economy, it’s not uncommon for borrowers to have less than perfect credit.  When the housing market crashed in 2008, many people lost their jobs and were left struggling to make ends meet.  These financial hardships led to missed mortgage payments, foreclosures and sometimes even bankruptcies.  But now, as the economy begins to shift, many people are beginning to move forward financially and would like to reenter the housing market.

In this video, David Talbott, a Mortgage Advisor with Samuel Scott Financial Group, will  explain the different financing options available for individuals with less than perfect credit.

First of all, it is important to understand how missing a mortgage payment can affect credit.  Falling behind on a mortgage payment can lead to a decrease in a credit score, sometimes up to 100 points.  A drop this large will definitely have a negative impact on loan applications, whether applying for home financing or a new credit card.

Your credit score is a major factor in determining whether or not you qualify for a loan and what the parameters of your loan look like.  Which range does your credit score fall into?

•  Poor Credit Score- 560-619
• Average Credit Score-620-679
• Good Credit Score- 680-740
• Excellent Credit Score- 740 +

The closer you are to having an average credit score, the more options your Mortgage Advisor will have to help you qualify for a home loan.  People with lower credit scores have several different options that can make getting a home loan possible.  Here are a few concessions a borrower could make to overcome poor credit…Read More by Clicking HERE!