Beyond Know How

You hear everyday about mortgage loans for bad credit, but what about good credit mortgage loans?

First, what determines if you qualify for a good credit mortgage? A credit score above 680 should do the trick. This kind of score will open the flood gates to a whole world of excellent mortgage loans. It will make your head spin, so take an aspirin and drink water. You’ve been warned.

So which loan should you chose? One that won’t keep you up at night. One that feels comfortable, is easy to acquire, and has affordable terms.

But in all reality, if you have a job, good credit, down payment, and can afford it, you shouldn’t be so picky. Keep it simple. If you are in it for the long haul or are risk-averse, get fixed. If you are in it for the short term, 3 to 5 years, get an ARM. If your not sure, get a hybrid. If you have no clue what I’m talking about, ask your loan broker. That’s what he gets paid for. Do your research and ask lots of questions. That’s your part.

If you have bad credit you may be thinking that there is no way anyone would ever consider giving you money to buy a home for you and your family. If this is your situation, you may qualify for a bad credit mortgage loan.

This type of loan was created especially for people who don’t have a squeaky clean credit history. Bad credit loans allow people with bad credit to borrow money from lending companies to buy a house or refinance their loan so they can pay off previous debts.

With the economy the way it is today in the U.S. more and more people are faced with bad credit. There’s no reason to be ashamed of bad credit, times are tough. With options, like the bad credit mortgage loan, families that were previously turned down are now able to buy homes.

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Bad Credit Mortgage Loans

One of the downfalls of the mortgage industry has been the stated income loan. They are also called liars loans because of people’s tendency to overstate their incomes and understate their liabilities. These loans were extremely popular for self-employed people that couldn’t provide w2s to prove their income. These loans did cost a little more and usually carried a slightly higher interest rate; however, many borrowers were more than happy to pay a little more in return for the ease of obtaining these loans.
These loans spelled trouble from the beginning. With little regulation and brokers doing everything they could to

photo credit: Lori Greig

push loans through, no matter what, to get their commissions. People didn’t seem to realize that just because a broker told them they qualified for a loan that they couldn’t necessarily afford the payments. Many of these loans were adjustable and once they reset happened the borrower could no longer make their payments.