Do You Have Less Than Perfect Credit?

DOWN PAYMENT

Credit scores can affect how much you’ll be required to pay as a down payment, and the amount of down payment will vary depending on the home loan program. The better the credit score, the more flexibility the borrower might have when it’s time to determine how much is needed to pay upfront.

TYPES OF LOANS AVAILABLE

Credit scores tell lenders how likely you are to pay back the money you borrow. A mortgage is possible with a lower credit score, even for first-time homebuyers, but the higher the credit score, the more home loan options there are. There are low credit home loan options for scores as low as 580.

INTEREST RATE

Credit scores directly influence the mortgage interest rate. The higher the credit score, the greater the lender’s confidence is that you will make payments on time, which could help you qualify for lower rates and fees. Usually, the lower the credit score, the higher the monthly mortgage payment will be.

PAY OUTSTANDING DEBT QUICKLY

Ultimately, the lower your credit balances are, the higher your potential credit score will be. However, to achieve any credit points, one must have a revolving account. Our licensed professionals help you understand how to maximize every credit point possible.

GET UP TO SPEED WITH PAYMENTS

Your credit score considers all the late and on-time payments and uniquely where all derogatory items are found. Make sure your historical and current accounts are paid on time, but if you missed a payment, we offer credit repair options that might help with these erroneous accounts.

CHECK YOUR CREDIT REPORT

Check your credit score at least on time every year but checking it too often could negatively impact your score. Most banks offer a free credit report service, or there are online services too. Our mortgage advisors can also check it for you, and in some cases, they can pull your credit score without impacting it.

FHA

This popular government-backed mortgage was created to even the playing field so that borrowers with all types of credit can get a mortgage with a competitive rate and an affordable monthly payment. This program is an excellent option for first-time homebuyers who have past credit issues or lower credit scores.

VA or USDA

The VA program helps active and veteran military borrowers and their spouses get affordable financing with great rates and no down payment or mortgage insurance. The USDA offers home financing with no down payment for borrowers with a 620-credit score and living in rural America.

NON-QM

A Non-QM is a private mortgage program for borrowers that don’t meet the requirements of the government-backed financing options. Although this program may require a larger down payment, this is an option for borrowers with damaged credit or those that have difficulty documenting their income.