Sub Prime Mortgage Loans Who Qualifies For A Sub Prime Loan

Sub Prime Mortgage Loans Who Qualifies For A Sub Prime Loan



Sub-Prime Mortgage Loans – Who Qualifies For a​ Sub-Prime Loan?
Sub-prime mortgage loans are designed for those who don’t qualify for a​ rated loans,​ typically those with a​ FICO score of​ less than 650 .​
They also cater to​ those desiring unconventional terms,​ like a​ jumbo loan .​
As with any lender,​ to​ find the​ best financing,​ you​ have to​ compare mortgage loan offers.
Who Qualifies For Sub-Prime Loans?
Anyone can qualify for a​ sub-prime loan,​ no matter their credit history .​
Even people with excellent credit may choose to​ work with a​ sub-prime lender to​ work out special terms.
When it​ comes to​ mortgage loans,​ sub-prime lenders don’t decline applications .​
Rather,​ they present terms,​ which you​ can choose to​ accept or​ decline.
For instance,​ a​ person could discharged a​ bankruptcy and apply for a​ mortgage the​ next day with a​ sub-prime lender .​
The lender would likely charge 12% above conventional rates and require a​ 50% down payment .​
The option is​ to​ either take the​ loan or​ wait two years for much better terms.
What Sub-Prime Lenders Offer?
Besides flexibility with terms,​ sub-prime lenders offer near conventional rates .​
On average,​ sub-prime lenders charge 1% to​ 2% above conventional rates for every drop in​ credit grade .​
However,​ large cash reserves or​ down payments can offset a​ negative credit history.
Sub prime lenders don’t require private mortgage insurance – a​ real savings if​ you​ don’t plan on​ a​ down payment of​ 20% or​ more .​
Lenders also offer refinancing options in​ your mortgage,​ saving on​ closing costs in​ the​ future.
Who Provides Sub-Prime Loans?
It used to​ be that only unconventional financing lenders offered mortgages to​ those with poor credit .​
But now virtually all banks and financing companies deal with sub-prime loans .​
For the​ lowest credit ranks,​ you​ still need to​ work with a​ sub-prime lender.
To find the​ right sub-prime loan,​ compare financing offers from several companies .​
You can work with a​ mortgage broker online to​ evaluate quotes in​ minutes or​ go directly to​ lender sites.
When requesting a​ loan estimate,​ provide as​ much information as​ possible,​ including your credit score .​
But don’t let the​ potential lender inspect your credit report unless you​ want to​ see your credit score go down .​
Only allow the​ most promising lead access your report to​ complete the​ loan application.




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