Low FICO Loans
When you apply for a mortgage loan, your credit score will either be your friend or your enemy. This is why most people are smart enough to start building good credit long before they need a mortgage loan. Having a low score isn't going to prevent you from getting the loan in the end but is is going to hike up your interest rates. However, there is an option of getting a mortgage loan with no credit at all. But, Before you apply for a no-FICO mortgage, it's essential that you understand how they work and how you can qualify.
Purpose of You Credit Score
If no one had credit score or credit reports, it would be impossible for a bank lender to decide who can and can't be trusted with a loan. A credit report is a very detailed outline of your credit lines and your payment history, meaning how long you have had credit, how many lines of credit you have, and what your balances are on your current credit lines. With this information is number, your FICO score. The number will range anywhere between 300 and 850. Obviously, the higher, the better.
How Mortgage Loan is Affected By Credit Scores
A while back, it was pretty much impossible for an individual to get approved for a mortgage loan if he/she had bad credit. Now, many institutions had bank lenders have provided a way for those with bad credit to still be approved. now, it is possible for you and your family to get that home loan you have waited so long for.
For the most part bad credit means you have negative hits against you on your credit report. Negative hits that hurt you slightly are things like inquiries on your credit, a late payment, etc. Things that might affect your credit a little more significantly are things like foreclosures or bankruptcies on your account. Luckily, there are other methods of getting approved for loans. The lenders will still always look at your FICO score but it won't play quite as large of a role.
No Credit Home Loans
If you have bad credit or no credit history, you may qualify for a no credit score home loan. In many instances, homebuyers earn a sizeable income, in which they can afford to buy a home. However, because of past credit history, many will not qualify for a conventional home loan. Rather than wait until credit improves, these individuals may apply for loans without using credit scores.
Try using one of ABC Loan Guide's
There are quite a few banks and mortgage officers now that offer the no-FICO loan, but that doesn't mean you don't need anything. You have to first pass their other qualifying criteria. So you are aware, most banks will only finance up to 80% of the total loan, sometimes less. Also, the loan will always require full documentation if they are not requiring you FICO score. That's is a fair trade-off if you ask me. What that means is that you must provide income documentation to the lender.
Purpose of You Credit Score
If no one had credit score or credit reports, it would be impossible for a bank lender to decide who can and can't be trusted with a loan. A credit report is a very detailed outline of your credit lines and your payment history, meaning how long you have had credit, how many lines of credit you have, and what your balances are on your current credit lines. With this information is number, your FICO score. The number will range anywhere between 300 and 850. Obviously, the higher, the better.
How Mortgage Loan is Affected By Credit Scores
A while back, it was pretty much impossible for an individual to get approved for a mortgage loan if he/she had bad credit. Now, many institutions had bank lenders have provided a way for those with bad credit to still be approved. now, it is possible for you and your family to get that home loan you have waited so long for.
For the most part bad credit means you have negative hits against you on your credit report. Negative hits that hurt you slightly are things like inquiries on your credit, a late payment, etc. Things that might affect your credit a little more significantly are things like foreclosures or bankruptcies on your account. Luckily, there are other methods of getting approved for loans. The lenders will still always look at your FICO score but it won't play quite as large of a role.
No Credit Home Loans
If you have bad credit or no credit history, you may qualify for a no credit score home loan. In many instances, homebuyers earn a sizeable income, in which they can afford to buy a home. However, because of past credit history, many will not qualify for a conventional home loan. Rather than wait until credit improves, these individuals may apply for loans without using credit scores.
Try using one of ABC Loan Guide's
There are quite a few banks and mortgage officers now that offer the no-FICO loan, but that doesn't mean you don't need anything. You have to first pass their other qualifying criteria. So you are aware, most banks will only finance up to 80% of the total loan, sometimes less. Also, the loan will always require full documentation if they are not requiring you FICO score. That's is a fair trade-off if you ask me. What that means is that you must provide income documentation to the lender.
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