2017  Guidelines that Help You Get The Loan
2017 Guidelines that Help You Get The Loan
November 7, 2017
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Bad Credit Mortgage Loans Now Getting Qualified in Florida with No Lender Overlays

Florida Bad Credit Mortgage Loans Blog Was Updated: Bill Burg Nov 8, 2017

We all remember that Florida was hit very hard after the Great Recession of 2008, affecting most of the property values throughout the entire region.

  • In the past, Home values had appreciated by double digits began to plummet and a large group of homeowners possessed mortgage balances much higher than their home values.
  • Short Sales and Record foreclosure numbers left many families with bankruptcies, foreclosures financial devastation.
  • Today, the housing market is recovering, and the Floridians are now in one of the hottest states in which there are a shortage of homes for sale and an ever-growing demand of home buyers.
  • More good news, families who may have lost their homes back in the 2008 to 2012 recession have most likely passed their minimum waiting periods after foreclosure and bankruptcy.  Those Floridians may now qualify for a home loans.
  • Some other good news, many may also qualify for Bad Credit Mortgage Loans or may have the option of qualifying for other specialized home loans.
  •  While many others have delayed buying a house, thinking that they had no possibility of buying a home, they can now, FINALLY begin look at home ownership.
  • Now with many current major changes in mortgage lending, home buyers can now qualify for Florida Mortgage Loans again.


Importance of Credit:  Mortgage Ready Credit Repair

As Americans we maintain our lifestyles with the help of credit. Good or Bad Credit affects almost all Americans in multiple ways.  So, the question is: how to clean up credit to buy a home.

  • Most of All Americans take loans for our homes, we finance or lease our vehicles, if you went to school you most likely have, student loans, installment loans, personal loans, business loans, and in some form a few credit cards.
  • How we pay on those installments is how we are “scored” by the Big Three credit bureaus is the most important indicator on how you will pay on a future loan. 
  • Some advice by an experienced Mortgage Loan Officer is always helpful in getting your application Mortgage ready.
  • One thing that happened to many during the 2008 Real Estate and Credit Collapse continued not using credit and simply paid everything with cash.  “If you don’t use it you lose it” is the best way to describe what eventually happens.
  • The negative to this story, is a primary reason many consumers have low credit scores is simply lack of activity on their credit accounts, especially revolving accounts. 
  • Note: when reestablishing credit, use them sparingly, if use them at 10 to 30 % of the total limit, you will maximize the points you will get added to credit score. If you want your mortgage credit repair to work, that is one of the secrets from the experts.
  • Consumers can have credit scores in the 500’s, ask me how to improve credit score 100 points, simply, dust off the old credit accounts and re-established your credit history.


Credit Scores Versus Credit History: How to Improve You Credit Score Immediately

A Mortgage Loan Officer will view review two things.  Your credit scores and the recent history on that credit report, those two factors are:

  • The payment history of borrower primarily over the last 12 Months.
  • Any Late Payments in the months after a Bankruptcy, Foreclosures, Deed In Lieu Of Foreclosure or a Short Sale and how you bounced back from what happened,


How Underwriters Utilize Guidelines and Look at Your Credit History

When consumers use credit, the big three credit reporting agencies take that information and calculate that data to determine a score.  That score determines at what interest rates you will pay and whether you are even granted credit or denied.

  • So, know you are asking yourself, how long does it take to improve credit score. It is not as important, how long, as that you do improve and keep it maintained. 
  • Underwriters only use those set guidelines when determining your financial future. I know you are thinking to myself, I do everything else in my life wonderfully, but I was not very good at these items.  In the banking world, it is just numerical.  Use the numbers to your advantage!
  • The most weight is put on credit scores when granting credit to mortgage loan borrowers. So, do what you can to continue improving your scores
  • Besides credit scores, income, debts (primarily your Debt-to-Income ratio) as well as assets all are factored in your ability to buy a home.
  • At the beginning of the process, Credit scores are the deciding factor with most mortgage lenders if they are even going to proceed with the credit approval process. Working with an experienced Mortgage Loan officer can help guide you in getting where you are not to getting a home loan approved.  Many banks, simply do not want to invest the time to help you after they see your credit scores are not perfect.
  • Many of those banks have higher than the minimum requirements to get you accepted.  That is called added Bank Overlays.  That means, you might get the boot with one bank and go to an experienced loan officer and get the mortgage. 
  • However, if the credit and credit scores meet the minimum credit guidelines and requirements of the creditor and/or lender, the credit and/or loan process then proceeds to the next level. 
  • You may still get rejected do to those higher than the minimum credit requirements.  Those are again called added Bank Overlays


Minimum Credit Scores to Qualify for Florida Bad Credit Mortgage Loans: How to Find a Credit Repair Mortgage Lender

The Bill Burg Team are all specialists in getting Florida home buyers qualified for Florida Bad Credit Mortgage Loans and All Types of Home Loans

  • We at the Bill Burg Team are experienced and licensed to do business in multiple states and a large percentage of our borrowers are Florida home buyers and Florida homeowners.
  • For those Florida home owners, we can also help with refinancing with no closing costs.
  • The Mortgage Loan Officers at The Bill Burg Team have both a five-star national reputation in both service and goal to close most loans in 21 days or less and our primary business model is that of no overlays on government loans and Conventional Loans.
  • The Bill Burg Team is known both regionally and nationally as being one of the most aggressive Florida Bad Credit Mortgage Professionals and strive to more loans approved.

The minimum credit score requirements for home purchase loans are:

  • You must have a minimum 580 FICO Credit Score, to qualify for a 3.5% down payment FHA Loan with no lender overlays.
  • No overlays on VA Loans.
  • Conventional Loans require a minimum 620 FICO Credit Score to qualify.
  • The minimum requirement for a USDA Loans have a 580 FICO Credit Score.


Lenders Risk Level of Borrowers and Credit Scores

  • Credit Score of 760 to 850 is classified as having an excellent credit rating.
  • Credit Score of 700 to 759 is classified as a great credit rating.
  • Credit Score of 660 to 699 is classified as a good credit rating.
  • Credit Score of 580 to 659 is classified as a fair credit rating.
  • Credit Score below 580 is classified as a poor credit rating.


Borrowers with High Credit Scores

If you have excellent credit scores, you can rest assured you will qualify for any type of credit you apply if you also satisfy the income and DTI requirements.

  • You should have very little problem getting approved for credit cards, auto loans, and mortgages, but with Bank Overlays, you may be paying too much for your home loan.
  • Most lenders classify a person with a credit score above 740 FICO credit rating as a “premium” credit borrower and it will be much easier to get approval.  As we have all ups and downs in life, it is completely understandable if you are not in that category.


Florida Bad Credit Mortgage Loans: Borrowers with a 620 or Lower FICO Credit Scores

If your Credit scores is below 620 FICO you are considered by most lenders as either too risky or viewed as less favorable and requires a higher interest rate or they do not to work with you at all.

  • The Bill Burg Team specializes in helping borrowers with under 620 FICO credit scores.
  • If you are a borrower with credit scores in the 580 to 619 range and are having a difficult time: contact The Bill Burg Team.
  • A large percentage of our borrowers have a 600 credit scores or less.
  • FHA requires that a 580 FICO for a 3.5% down payment FHA home insured mortgage loan but as have talked about before, most lenders require a higher credit score due to their added, not required, lender overlays.
  • FHA Lender Overlays are ADDITIONAL Mortgage guidelines that is implemented by individual mortgage lenders and NOT FHA. Most banks fit into this category.
  • Around 75% of our borrowers are home buyers who have recently been denied for a mortgage loan after they were in some way pre-approved and were later declined.  The only results were a stressful mortgage process with their current lender.


Bad Credit Scores Can Be Improved: How to Improve Credit Score Immediately

Poor credit scores can be improved and if you have recently damaged your credit by being late on your monthly bills, your credit score will gradually improve over time.

  • It is like a bad hangover, except no alcohol was involved.
  • Once you are late with a vehicle payment, for example, your credit scores will most likely drop around 50 to 100 points. 
  • However, if you get back on track and pay your car payment on time for the next year, you will probably regain most of the points lost and you will regain your good credit status.


Makeup of Your Credit Scores:  What Counts the Most

  • 35% Is your current payment History
  • 30% is your outstanding balance on active debts
  • 15% The overall length of each credit history
  • 10% Types of credit accounts, yes, you are judged on what type of credit accounts you have.
  • 10% New credit applications that you have applied for.


You Can and Should Monitor Your Credit Report

You should monitor your credit report and credit scores like you monitor your bank account.  You might be surprised that information might not be yours or is outdated.

  • Bad credit can mean higher interest rates on your loans, much than needed higher insurance premiums monthly insurance bill, and can also cause you to lose a job offer or promotion.
  • Most employers today run credit background checks on new employees and/or current employees who are up for a promotion.


How to Obtain Florida Bad Credit Mortgage Loan?

The Bill Burg Team offers many types of loans including:

  • Conventional, FHA. VA, USDA, ARM and 203K Rehab Loans
  • NON-QM Loans(through our lending partners) such as bank statement loans, no income verification loans, and one day out of foreclosure and/or bankruptcy mortgage loans.
  • Over 75% of our borrowers are people just like you either received a last-minute mortgage loan denial or are going through an intense level of stress during their mortgage process with their current lender because they were not properly qualified.
  • Bill Burg and The Bill Burg Team are experts in closing loans in 21 days or less and close 100% of their pre-approvals.
  • There is no reason why a pre-approved borrower cannot just close their home loan but close it on time.

We specialize in helping mortgage loan borrowers who have problem credit or poor credit scores qualify for mortgage loans. If you want to purchase a home but have poor credit scores, contact Bill at 941-444-0010 or text Bill Burg on his cell for faster response at 941-444-0010. You can also email us at contact@mortgagelendingplace.com or you can see more blogs and start your application at mortgagelendingplace.com

Bill Burg is a 3-time Author in teaching others about the Financial and Real Estate Business.  He is an experienced Senior Mortgage Loan Officer with USA Mortgage and USA Mortgage is one of the few banks that have a business model of success without Bank Overlays.  Overall, he has invested that last 13 years helping hundreds of families and investors achieve the dream of home ownership.

Bill Burg at Mortgagelendingplace.com and USA Mortgage NMLS# 1647508

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