#mortgages for people with bad credit
eMortgageSolution.com Last Update 10-24-2015
A powerful eMortgage auction for problem credit, bad credit and income problems.
PURCHASE HOME LOANS AND MORTGAGES
If you are buying a new home, you probably already know that your monthly mortgage payments will most likely be your greatest personal expense. No doubt, you will want to optimize your cashflow with the lowest rate possible. This website and the nationwide research that supports it, uses a proven eMortgage auction to get the right wholesale lenders to bid for your loan application. If you are purchasing a home with problem credit or income problems – or if perhaps you think your situation is unusual, you might want to check the following table for criteria relevant to your particular scenario.
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Low Credit Score
With technology vastly on the rise, more and more mortgage lenders are using “credit scores” as the primary guideline for underwriting and approving loans. A credit score is a number; thus obviously digital in nature and therefore lends itself to automation. Online or off-line, a credit score can easily be entered into a computer program for time saving underwriting.
In the majority of cases, this works well and keeps the costs down for folks with good credit or certain types of damaged or bad credit. However, it’s often a deal killer for folks who’ve been trying to repair or re-establish credit. The formulae used by the three major credit bureaus, Experian (formally TRW), Trans Union and Equifax, are algorithms that satisfy the needs of the majority; but unfortunately outcast the needs of many families, deserving as anyone else, to live the American dream. If the combination of derogatory items on your credit report fall into play in an unfriendly way to these algorithm formulae, your credit scores will be calculated low; making it almost impossible to get a fair deal on a home loan; or perhaps, unlikely to be approved at all.
The eMortgage auction addresses this dilemma by incorporating certain programs that are “credit matrix driven” rather than “credit score driven”. If you have a high credit score, the eMortgage auction will direct your file to appropriate “credit score oriented” lenders. If you have a low credit score, your file will be directed toward lenders that underwrite the old fashioned way; more specifically known as “credit matrix underwriting”. With matrix underwriting, credit scores are irrelevant.
Problem Credit, Bad Credit
The terms Problem Credit and Bad Credit usually refer to previously good credit that has been negatively affected throuh a time period, several months or even years in a row, during which the individual experienced financial hardship that was not possible for the individual to control. Late payments on credit cards, auto loans and other consumer debt occur throughout a time period. As such the credit problems are caused by an event, usually a period of problem time, a single occurance of cashflow problems; or a string of events causing caseflow problems. The right mortgage underwriting can consider this; and approve an application. If a credit report shows good credit prior to the problem credit and if there is an explanation for why credit will be good in the future, intelligent mortgage underwriting should provide a fair and reasonably priced home loan. The eMortgage auction specifically targets this type of “intelligent” mortgage underwriting.
Income problems are usually caused by misfortune. Ilness, loss of a family member, lapse of employment, career loss; and self employment issues can produce a devestating effect on someone’s income, cashflow and credit. Programs within the eMortgage auction can frequently provide a fresh start for people that have experienced hardship as a result of income problems. Extenuating circumstances, “outside of someone’s control”, can be an explainable cause, and if there is a realistic expectation that the problems have been resolved, eMortgage auction lenders will often provide a home loan with a reasonable and fair rate for the home owner; often regardless of prior income problems, or problem credit.
No Income Check and/or Non Provable Income
“No Income Check” and “Non Provable Income” home loans and mortgages are generally no longer available. However, often non-occupying co-signers can be added to help borrowers having difficulty when proving income is either too complicated or time consuming. Some common applications for these loans are for: