San Diego, CA (PRWEB) May 08, 2014
LoanLove.com is a borrower advice website that is dedicated to helping borrowers find home loans that they will love. With first class information, valuable resources and connections to top rate industry professionals, the website has quickly become a trusted destination for current news and expert loan advice. Loan Love continues to provide assistance to loan borrowers by providing in their new article that discusses the possibility of low interest rate loans for bad credit borrowers.
This new guide from Loan Love, titled Low Interest Rate Loans For Bad Credit Borrowers (You’re NOT Out Of Luck), says “If medical bills, divorce or other life circumstances have sent your credit score south, securing a home mortgage may seem out of reach. But a bruised score does not have to confine you to rentals for the foreseeable future. There are still opportunities for low interest rate loans for bad credit.”
The guide to low interest loans for borrowers with bad credit explains that mortgage lenders heavily rely on credit scores to determine if prospective borrowers will be able to qualify for a home loan. A potential borrower’s credit score provides a window into how they have handled credit in the past, which lenders see as one of the best indicators of whether or not the borrower will be able to reliably pay back their loan in the future.
Generally, credit scores are ranked as follows:
- 750 or above, excellent;
- 700 to 749, good;
- 650 to 699, fair;
- 600 to 649, poor; and
- under 600, bad.
The article goes on to share some credit score improvement tips for prospective borrowers and reviews the impact a low credit score can have when it comes to finding affordable home financing. Loan Love then goes on to give advice on how to find a low interest home loan if bad credit is a problem. Loan Love says, “Before the housing market meltdown of a few years ago, borrowers could get a home loan without a lot of effort, often without even providing documentation of their assets or income. While they often charged substantially higher interest rates, there were plenty of subprime lenders who would approve loans for borrowers with low credit scores. But times have changed. Most subprime lenders went out of business, but that doesn’t mean you are automatically prohibited from qualifying for a home loan.”
The article goes on to discuss some options that bad credit borrowers may have available to them, in particular the guide takes a look at FHA loans, which are usually the best option for those in this situation. To conclude, Loan Love states, “Even borrowers with significant credit blemishes, like short sale or bankruptcy, may be able to meet requirements for getting a mortgage. FHA’s “Back to Work” program allows borrowers to reduce the waiting period to qualify for a home loan. There are certain requirements to quality, such as receiving financial counseling. You lender should be able to point you in the right direction to determine if you could qualify.”
For more information on this topic, click here to view the full article at LoanLove.com.