Home Loan Borrowers Can Still Get Texas mortgages for bad credit
At Level 4 Funding, we believe there is no need to fret if you are in
debt! New home loan borrowers can still obtain Texas home loan
or mortgages for bad credit or poor credit due to problems
with debt. Debt should not be viewed as a scary thing, especially if you are
buying a house. Like student loans, experts consider obtaining a mortgage as
‘good debt’. Good debt is considered an investment and something that can
improve your credit. However good credit is only considered good if you are
able to pay off a loan responsibility. To lenders, consistent and timely
payments on a substantial loan give a positive impression of the borrower. It
proves to financial institutions that the borrower has a dependable payment history.
With a significant and positive credit history, the borrower has an easier time
being approved for any type of loan, including a mortgage.
The problem is when the credit history is scarred from late payments or
defaulted loans. Such negative marks that result in bad credit can come from both
avoidable and unavoidable tragedies, such a maxed-out credit card or serious
medical situation. Despite whether a subpar credit rating came from an
irresponsible or a necessary decision, there is still hope for new home loan
borrowers to obtain Texas Home Loan if you have bad credit.
First, what is considered a low
credit score rating?
The difference between a low credit score and a bad credit score is
difficult to define. This is because to some financial institutions, both
situations are considered high risk. Therefore both low and bad credit scores
are not favorable to lenders. Most likely individuals with low or bad credit
score ratings will not be approved for a mortgage.
The breakdown of credit ratings is as follows:
750 and higher = Excellent
749 to 700 = Good
699 to 650 = Fair
649 to 600 = Poor
599 or lower = Bad
According to the above list, if your credit score is below 650, you are
considered to be a high-risk borrower. However exacting scoring may vary
depending on the lender you are seeking a home loan from. For instance, a 640
may be the cut off point for what is considered poor credit. In any case, with
a poor to bad credit rating, you most likely will not be approved for a typical
mortgage from a banking institution. However you may consider other loan
There are many options for new home purchasers with poor or bad credit
history. Lenders that accept bad credit
ratings are often very flexible with your financial situation. As long as you
have a good explanation for low score, offer proof of financial stability and have
a significant down payment, you will likely be approved for alternative
Speak to one of our friendly associates at Level 4 Funding, to learn
more about our alternative finance options for bad credit. We will assess your
individual financial circumstances and identify the right loan option for you.
Don’t hesitate in purchasing your ideal home today!
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027