Low Credit Score Mortgage Loans
Author: Carrie Reeder

Excellent credit is not required to buy a home. Of course, a
higher rating will qualify homebuyers for a low rate and better
loan programs. Still, buying a home after bankruptcy is easy.

Although home loans following a bankruptcy discharge come with
high rates, a home purchase is a great way to quickly boost a
low credit rating. Here are a few tips on getting a low credit
score mortgage loan.

Sub Prime Mortgage Loan Programs

There are many options available to homebuyers with a low
credit rating. Credit scores below 680 do not qualify for prime
home loans. Hence, these persons will need to speak with a sub
prime mortgage broker or lender. Sub prime loans are intended
to assist those who cannot obtain traditional mortgage
financing. These lenders work with all types of people and
credit situations. Furthermore, sub prime lenders have a
multitude of different loan options.

Who Qualifies for a Sub Prim Mortgage Loan?

Anyone with a low credit score can get approved for a sub prime
mortgage loan. However, there are certain limitations. Many
lenders will not approve a mortgage loan if the borrower's
credit score is below 500. In this instance, the risks are too
high. Homebuyers who fall into this group may consider
improving their credit before applying for a home loan.

Having a chapter 7 bankruptcy, collection accounts, and
judgments will not disqualify a buyer from obtaining a sub
prime mortgage loan. Naturally, loans of this sort have higher
interest rates. However, if the homebuyer maintains a good
payment history, they will have the option of refinancing for a
better rate in the future.

Other Loan Options Available after Bankruptcy

As mentioned, sub prime mortgage lenders offer a range of home
loans for every need. Following a bankruptcy discharge,
homebuyers have the option of obtaining a "no credit score home
loan." Because lenders do not offer 100% financing on these
loans, buyers must be prepared to pay a 20% down payment.

Another loan option available is the zero down home loan. This
loan is offered to buyers with good and bad credit. Zero down
home loans include 100% financing, which is perfect for first
time homebuyers and buyers with little cash savings. To qualify
for a no money down home loan with bad credit, your credit score
cannot fall below 580.


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list of Recommended After Bankruptcy Mortgage Companies
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online. Their recommended companies are reputable and
competitive in their rates.