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Houston Bad Credit Mortgage - Bad Credit Mortgage Loans I specialize in bad credit Houston mortgage loans. Just regarding anyone with a job or income might qualify for a home loan. The problem with bad credit is that the loan terms might be more restrictive including less favorable than good credit loans. Credit score including mortgage or rent payment history are key things in mortgage loan approval including terms. There are 3 main credit bureaus. They turn your information into a numeric score including the middle of your 3 scores is generally used. Your rent or mortgage payment history may additionally be considered, especially the most recent year. Only rent or mortgage payments that are 30 or more days late count against you. Lenders could additionally look at your income to see if it is adequate to cover the loan payment plus any other obligations. With a credit score lower than 490 you could probably need a down payment of 30% or more. It could be possible to work with less if the seller could carry a second mortgage (for example 10%), including the main lender agrees. You may additionally be able to find a particular assumable loan or seller financing but the is not common. Below 490 you could probably pay the highest interest rate allowed by law, or close to it. If your credit score is from 490 to 520, around 20% is usually required down. Most loans in the range are adjustable rate loans (ARM). The rate is often fixed for the first 2 or 3 years including then could adjust according to a particular index plus a margin. Because the rate could be high, a good strategy is to boost your credit score during the first 2 years including then refinance into a lower rate loan. A credit score of around 540 is usually enough to qualify for 90% financing. Lenders could often allow the seller to contribute 5% or 6% to your closing costs, which might help reduce the cash needed. 100% financing (zero down payment), is often possible with a score of regarding 580. A score in the mid 600’s or better could usually qualify for a particular excellent finance rate. If your current credit score including cash available are not workable to buy a home you might make a plan for improvement. It is very important to stay current on your rent payments. A good mortgage broker might give you tips on things you might do to improve your credit score. Anyone in Texas is welcome to call me at my Houston office for more information, 281-537-7800.
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