Sometimes bad things happen to good people in unfortunate circumstances such as medical situations and family emergencys. During these tough times its not uncommon to have some bills go unpaid and possibly even missed mortgage payments.
These events can have devastating effects on their credit profile as well and some people find themselves in a position where their credit scores have fallen below the 500 mark.
Individuals who have a FICO score below 500 will find that most mortgage companys are unable to help them. But there is hope.
Hard money lenders often base their lending decisions on the equity contained within the property versus the individuals credit scores and credit profile.
This can be a solution to some situations and its important that the applicant explore all possiblities before making a final decision.
There are many companies who offer credit repair services for relatively low costs. In the end, any dollars you spend to make significant credit repairs will come back to you in the dollars you save month to month with your newly improved scores and available interest rates.
A good way to start is by getting a copy of your credit report. Many people have errors on their credit report, and these errors can have a negative impact on your credit score. By disputing these erroneous items, you could raise your score back up over 500, which is typically the minimum credit score you'll need to get a mortgage.
This
is not a commitment to lend. Restrictions may apply. Information
is subject to change without notice. All loans are subject
to credit approval. Equal Housing Opportunity.