If
you have bad credit, you may not qualify for a conventional loan or low down
payment loans. In this case, you may consider a subprime mortgage. Because of
the higher risk associated with lending to borrowers that have a poor credit history,
subprime loans typically require a larger down payment and a higher interest
rate.
We
will also work with you to help educate you on how to clean up old credit
issues so that your next loan could be at conventional rates and terms. We have
worked with clients for as long as 3 years to enable them to have the credit
necessary to purchase a home. We typically do not charge for these services
(other than for the credit report).
So
don’t let poor credit keep you from finding out if you qualify for a home of
your own.
Subprime
Loans
Subprime
loans should typically be used as a short term solution, approximately 2-4
years. During that time, you can work to clean up your credit and qualify or a
refinance into a lower risk, lower rate loan.