Are you continually throwing good money away each month on rent? Would you like to change those rent payments into mortgage payments and have them go to something besides your landlord's children's college fund? Are you afraid that you cannot qualify? Have you considered a sub prime mortgage?
What is a sub prime mortgage?
Sub prime mortgages exist to help those who would not ordinarily qualify for financing, get a mortgage.
What if I have a poor credit history?
Sub prime loans are specifically made for people with a poor credit history. Over 75% of people have some kind of negative mark on their credit report. Depending on the lending institution, this can cause some difficulty when it comes to getting home financing. A sub prime loan can help. It will involve a higher rate of interest and they may also ask for a larger down payment, but it is a viable financing option.
How high of an interest rate will I have to pay?
That completely depends on your lending institution and their terms and conditions. They will look at your credit score and see what types of credit problems you have had. Late payments will lower your credit score but are not as detrimental as bankruptcy or repossessions. They will also consider your income and employment history. The bank or lending institution will weigh all of this against the risk involved, in first giving you the loan and then the conditions they set.
How important is my credit score?
It is important. Sub prime loan lenders will consider people with lower credit scores but the lower it goes, the more difficulty you will have in getting a loan and the more conditions they are likely to set.
Are there any down sides to a sub prime loan?
Yes, First off there is the higher rate of interest. Second, the down payment is larger. Next, the lending institution may set penalties for paying off the loan early. Check this carefully because it could still apply even if you sell the house.
A sub prime loan could mean the difference between renting a home and buying your own. People with poor credit can qualify but there are conditions. A sub prime loan can be a very useful tool but it does require research so use caution and do your homework.
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Are you continually throwing good money away each month on rent? Would you like to change those rent payments into mortgage payments and have them go to something besides your landlord's children's college fund? Are you afraid that you cannot qualify? Have you considered a sub prime mortgage? What is a sub prime mortgage? Sub prime mortgages exist to help those who would not ordinarily qualify for financing, get a mortgage. What if I have a poor credit history? Sub prime loans are specifically made for people with a poor credit history. Over 75% of people have some kind of negative mark on their credit report. Depending on the lending institution, this can cause some difficulty when it comes to getting home financing. A sub prime loan can help. It will involve a higher rate of interest and they may also ask for a larger down payment, but it is a viable financing option. How high of an interest rate will I have to pay? That completely depends on your lending institution and their terms and conditions. They will look at your credit score and see what types of credit problems you have had. Late payments will lower your credit score but are not as detrimental as bankruptcy or repossessions. They will also consider your income and employment history. The bank or lending institution will weigh all of this against the risk involved, in first giving you the loan and then the conditions they set. How important is my credit score? It is important. Sub prime loan lenders will consider people with lower credit scores but the lower it goes, the more difficulty you will have in getting a loan and the more conditions they are likely to set. Are there any down sides to a sub prime loan? Yes, First off there is the higher rate of interest. Second, the down payment is larger. Next, the lending institution may set penalties for paying off the loan early. Check this carefully because it could still apply even if you sell the house. A sub prime loan could mean the difference between renting a home and buying your own. People with poor credit can qualify but there are conditions. A sub prime loan can be a very useful tool but it does require research so use caution and do your homework.