How to Select the Right Mortgage for Bad Credit Borrowers

A friend of mine wanted to refinance his home, and was offered a subprime loan (mortgage for bad credit borrowers). He had come across hard times a few years back, and his credit profile had been in the gutter ever since. Just so you have an idea... here's a snapshot of his profile:

• 590 credit score
• Bankruptcy on credit
• 24 consecutive 30 day mortgage lates on credit (due to a complication with his bankruptcy)
• Various other collection accounts
  

His situation was bleak to say the least!!! He talked to a number of lenders... each of which took one look at his credit, and quoted him a subprime rate anywhere between 9 -14%

Then he stumbled across a loan officer who looked more deeply into his profile, and evaluated his situation as a whole - and not just a credit score.

To make a long story short... my friend was able to qualify for a loan AT CONFORMING RATES, and refinanced his home at a 6.375% on a 30 yr fixed with no prepayment penalty!!! He was also able to pull enough cash out to pay off his collection accounts, and build an addition on his home!!!

Now he is on a track to improve his credit, and clean up his financial situation - this would not have been possible had he settled for one of the other "mortgage for bad credit" loans he was being offered.

This blog is dedicated to showing you HOW to qualify for conforming rates - even if you have less than perfect credit.

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Jeremy

PS - OK I'll admit it... that witty and bright loan officer who saved the day was yours truly. Stay tuned to find out exactly what I did, and ways to make this work for you too. Enjoy the blog!