Low FICO Score Home Loan
If you plan to apply for a mortgage loan, you should be expecting to have a great credit score. This will help you significantly. However, some people who didn’t think to build up their credit prior to applying for a loan, may be up the creek without a paddle. However, it doesn’t mean you can’t get the loan. There is such thing as a no-FICO home loan but before you go applying for this, there are some thing that you’ll need to understand.
Credit Score Purpose
If no one had credit score or credit reports, it would be impossible for a bank lender to decide who can and can’t be trusted with a loan. A credit report is a very detailed outline of your credit lines and your payment history, meaning how long you have had credit, how many lines of credit you have, and what your balances are on your current credit lines. With this information is number, your FICO score. The number will range anywhere between 300 and 850. Obviously, the higher, the better.
How Credit Scores Affect Mortgage Loan Approvals
A long time ago, getting a mortgage loan with poor credit was impossible. But, now lenders and other institutions have started to offer flexible programs that make you able to qualify yourself and your family for the loan. These mortgage loans are designed especially for those families and individuals with poor credit.
Bad credit generally consists of several late payments, bankruptcies, foreclosures, collections, judgments, etc. All of these factors contribute to very low credit scores. Low credit scores equal higher interest rates, which will increase mortgage payments. Fortunately, there are loan programs in which FICO scores are not a primary factor.
Home Loans With No Credit?
finally there is a way to get approved for a home loan with little to no credit. most of the time, homeowners earn enough that they can easily afford a home. I think should always be the case before purchasing but sometime, even those that make enough to purchase a home are scared with some negative that happened in their credit history. in that case, a bank might ask that you come back when your credit is repaired.
Try an ABC Loan Guide
There are a lot of mortgage officers that offer this kind of loan. But, before you can be approved, you must meet certain criteria. Most banks will only finance up to 80% of the loan if you have no score. That at least proves to them that you make sufficient to pay 20% down. These loans are also given on a full-doc basis, meaning your need documents stating your income etc.
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