Poor Credit Home Mortgage Loans
If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.
FICO - Fair ISAAC & Company - is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.
The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:
1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.
2. If you have a FICO score lower than 500, there is very little chance you'll be getting a mortgage home loan.
That said, if you have a score of:
500 - 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.
600 - 640 You should get a 100% home loan financing. Thats right, with no money down.
640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You're in the drivers seat! You should be able to get an excellent rate with excellent terms.
3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn't be there. If there is, get it changed before you apply for the home mortgage loan.
4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.
5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don't succeed in getting your home loan mortgage, don't give up. Some lenders may still be willing to lend to you!
People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.
To view our list of recommended bad credit mortgage lenders online, visit this page: Recommended Bad Credit Mortgage Lenders
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans. The site has many informative articles and the latest finance news.
Latest News
US MBA's Mortgage Applications Index Fell 1.5% (Update1) Bloomberg - ... as fewer homeowners sought to refinance their loans The Mortgage Bankers Association's index of applications to buy a home or refinance a loan dropped ... Mortgage application volume hits multiyear low Mortgage volume fell 1.5% last week: MBA Mortgage applications slide, even though interest rates drop |
Refinancing not always an easy ride Seattle Post Intelligencer - I recently refinanced my mortgage, and I can tell you that I don't ever want to do that again. Even for people who read, read and read the fine print, ... |
![]() Los Altos Town Crier | FHA Share of Mortgage Apps Soars: MBA Housing Wire - Data from the US Department of Housing and Urban Development show that the level of conventional to FHA refinance applications had increased 317 percent on ... Buyers flock to FHA, government-backed loans FHA loans: The good, the bad and the eligible Ginnie Mae's New Role Spurs Concerns |
Rising Cost of Debt Stokes Fears Wall Street Journal - 8, applications were down about 37% from a year ago, with purchase applications off 32% and refinance applications down 44%, according to the Mortgage ... |
![]() BBC News | 'Cash to leave' offer from lender BBC News, UK - ... for lenders to refinance the mortgages they have in the normal way - by securitisation or sale," said Ray Boulger of mortgage brokers John Charcol. |
AFP | Freddie and Fannie Bail-Out Imminent Sovereign Society, FL - Balance sheets at both companies continue to hemorrhage amid plunging home values and a collapse in mortgage and refinance applications. ... Consumers feel fallout from Fannie, Freddie Fannie Mae, Freddie Mac Fall on Bailout Fears |
THE ASSOCIATED PRESS Newsday, NY - They can't refinance because housing prices in those markets have nose-dived, and lenders are now demanding full documentation of income and assets. ... |
pros and cons of refinancing Corsavoo.com, France - Lenders sometimes offer no-cost refinancing, charging you zero points for your mortgage loan. Generally, you will pay a higher interest rate than on an ... |
Bell County foreclosures likely to beat last year’s Temple Daily Telegram, TX - Karl Voss, senior loan officer with Texas Mortgage in Temple, said it’s hard for borrowers with subprime homes to refinance and stay out of foreclosure. ... Bell County foreclosures up Posted on: Tuesday, August 19, 2008, 4 ... |
Commentary: Even the best borrowers will feel the brunt of the ... MarketWatch - Anyone with a mortgage that's less than five years old will be hard pressed to refinance into something better, and when rates rise -- if the Federal ... |
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