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Loan Programs Available For Individuals With Credit Problems
If you think that you have to have perfect credit in order to
purchase your dream home, think again. There are a number of
loan programs for individuals who have past credit problems,
including bankruptcy. While interest rates may be higher for
those with less than perfect credit, there are now a variety of
mortgage loan programs used to finance the purchase of a new
home. Many companies who specialize in lending, such as
http://www.NorthstarFinance.us, are familiar with the various
loan options and interest rates that can help to make a
homeowner's dreams come true.
For example, an FHA (Federal Housing Administration) loan is
government backed and the lender is guaranteed to receive their
money. FHA loan programs call for a much smaller down payment
than conventional loans, which often require a 10-20% down
payment on a mortgage loan. New homeowners, people with past
credit problems or no credit at all may find it easier to
qualify for an FHA loan. Individuals with a previous bankruptcy
may be required to provide an explanation as to the events
leading up to their bankruptcy, but
http://www.NorthstarFinance.us offers a convenient pre-approval
and application process that helps the applicant through the
loan process very efficiently. In addition, two years of
re-established credit is recommended if the debtor received a
discharge under chapter 7 bankruptcy. Many lending institutions
prefer to see several open credit accounts with a good payment
history in the two years prior to applying for a mortgage loan.
If the debtor remains in a chapter 13 bankruptcy repayment plan,
he/she will have to request permission from the court before
attempting to get a mortgage loan.
During the home loan process, the applicant will submit
financial information and give permission for the lender to view
a copy of their credit report. If the applicant has past credit
problems, including bankruptcy, missed or late payments,
foreclosures, repossessions, etc., their FICO score will be
lower than if none of those circumstances were present. In
determining the credit worthiness of the applicant, the lender
will look at several factors, including employment history,
credit history and debt to income ratio. Depending on the
applicants credit, or FICO, score, the lending institution may
or may not grant the mortgage loan. If a loan is granted, the
interest rates may be higher than those for an individual with
perfect credit.
In addition to mortgage loans, there are a number of other
programs available to those with past credit problems. Debt
consolidation or home equity loans are offered as a way to help
the applicant regain control over their current debt. For
example, if an individual is overwhelmed in credit card debt,
he/she has the option of applying for a debt consolidation loan.
This type of program allows the consumer to take out a loan to
pay off the credit cards in exchange for one convenient monthly
payments which, in many cases, is lower than all of the credit
card payments combined. A home equity loan allows the applicant
to refinance against the equity that he/she currently has in
their home. A qualified lender, such as
http://www.NorthstarFinance.us will be able to explain the
benefits and risks for those who decide to refinance their home.
Anyone that has had credit problems in the past knows how
difficult it can be to rebuild credit, but it is a comfort to
know that there are loan programs out there for individuals with
less than perfect credit. More and more lending institutions,
such as http://www.NorthstarFinance.us, are becoming dedicated
to helping potential homeowners through the entire lending
process, helping to get the lowest interest rates possible and
explaining the various loan programs available to fit their
needs.
Located in Florida, http://www.NorthstarFinance.us is a mortgage
company specializing in various loan programs, including
mortgage, debt consolidation, home equity lines of credit, etc.
About the author:
None
Written by: Victor Bran
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