Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Home Loans For People With Poor Credit - Understanding The Requirements For A Subprime Mortgage

Written by: Carrie Reeder

Home loans for people with poor credit demand that you understand the requirements for a subprime mortgage loan to get the best rates and terms. By satisfying the requirements, you can be assured of securing a subprime mortgage to buy a home.

Time To Rebuild Credit

Depending on subprime mortgage lenders, you can be approved for a mortgage loan after two to three years of a foreclosure or bankruptcy. Within those three years, by making regular payments, you can end up having a good credit score.

If you simply have a poor credit score due to late payments, you will probably still qualify for a subprime mortgage. However, the longer period you have of on time payments, the better your score and rates will be.

Down Payments

Down payments reduce the risk for mortgage lenders. So with a FICO score of 600, you could apply for a zero down mortgage. A FICO score of 585 or higher will require at least 5% down.

Debt To Income Ratio

Another factor in subprime lending is your debt to income ratio. The amount you pay out for loans, like credit cards and car payment, are deducted from your income's buying power. The less debt you have, the more you can qualify to borrow. The less debt you have, also makes you more appealing to mortgage lenders, even with poor credit.

Cash Reserves

Subprime mortgage lenders also take a look at your cash reserves in determining your credit risk. Mortgage lenders like to see a minimum of two month's worth of payments in a savings account or bonds. A larger cash reserve will increase the likelihood of your mortgage loan's approval.

Be Your Own Advocate

Subprime mortgage lenders offer a service to people who would not otherwise qualify for a mortgage loan. But, you still need to be your own advocate and compare subprime lenders. Interest rates, fees, and terms vary widely in the financing industry, so research to find the best deal.

The internet allows for easy comparison of subprime mortgage brokers with instant quotes. You can also find better financing deals online, since Internet subprime lenders have lower overhead and personnel costs.
About the Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of our most recommended bad credit mortgage lenders online, visit this page: http://www.abcloanguide.com/lessthanperfectcredit.shtml


Other Related Articles:

New Home Construction Loans 101
When you are ready to build your first home or that dream home that you have been wanting for so long you will probably wind up needing help with the financial part of the building process. The funding for your new home is available through new...read more

Home Equity Loan Refinance - Important Facts
Refinance refers to applying for a secured loan intended to replace an existing loan secured by the same assets.You must speak with a finacial advisor before you decide to refinance. Refinancing the loan you had taken at higher rates is a...read more

How to Qualify for a Home Mortgage Loan
Are you considering applying for a mortgage loan to purchase your first home? If so, you should read the following tips below that will make the process easier! If You Have a Good Credit History It Is Easier To Qualify For a...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map