Bad Credit, Bankruptcy or Foreclosure, You Can Get A Mortgage!
Lenders understand credit, debt and employment issues. We have lenders who will lend one day out of bankruptcy or foreclosure. Mortgage pricing is risk adjusted. The higher the risk of default, the higher the interest rate charged on a mortgage and the higher the equity or down payment required. Today, approximately 2 out of every 3 new mortgage loans are sold to Fannie Mae and Freddie Mac. They create pools of mortgages and sell mortgage backed securities to investors on Wall Street. What investors are willing to pay for mortgage backed securities determines mortgage rates on a daily basis. Both Fannie Mae and Freddie Mac, using historical data, have concluded there is a high probability of a mortgage not being paid on time if the credit score is below 620. Mortgages issued to people with credit scores below 620 are generally sold on the secondary market to real estate investment trust, insurance pools, and other institutional investors, or held in the lender’s portfolio. Lenders making these loans manage the risk of default two ways, with higher interest rates and Loan to Value. (Loan to value, is the percentage of the mortgage to the property value. Example, you buy a $100,000 home and put 20% down or $20,000 and borrow 80% or $80,000. Your loan to value is 80%} · Loan to value is king. If you have a low enough loan to value, it ultimately doesn’t matter what kind of credit score you have and what income requirements you meet. (The lender could sell the collateral and be made whole on a foreclosure. With a lot of equity in the home, the lender can sell the home at a deep discount to market value and recover all its money). Credit Score. Many of the lenders base their decision on the credit score. The higher the loan to value, the more important the credit score becomes Documentation of income and assets. Much more flexible. Many lenders will consider 12 to 24 months of bank statements sufficient for full documentation.
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If you or someone you know is suffering from credit issues, there are steps you can take to improve your situation. Whether your situation is due to an illness, job loss or simple lack of discipline, we can help put you into a credit remediation plan that will position you to reduce your debt and be in a position to be in a better borrowing situation in 12 to 24 months. Immediate relief through a debt consolidation loan may be possible.
Most people don’t realize it will take 25 to 40 years to payoff their high interest credit cards if they are paying the minimum payment. By using the equity in your home, we can often reduce monthly payments by $300 to $3,000. Be sure to click on the slide show Our Advice Makes a Difference and review the detailed reports and analysis we can prepare fore you. Why do I offer this report free of charge? I am offering this free of charge because I want to be your mortgage advisor. My team and I offer more than simply a loan: I’ll personally advise you on how to use and apply the information and ideas contained in this report. The types of loans mentioned above are only a few of the multitude of loan types available. We will prepare a written comparative cost analysis that clearly spells out costs of each loan program. This will help you chose the best program tailored to your situation. We sincerely hope these tips and ideas will be of value to you. If we may be of any further service please contact our office. We would consider it a privilege to be of service to you! If you would like a free consultation call our office at 1-800-955-7898. Thank you. Bruce E. Cox, CPA President Cox Financial Network LLC 8009 Atlantic Avenue Margate City NJ 08402 Direct: 609-822-0744 Fax: 609-822-6938 Email: becox@coxfn.com Website: http://www.coxfn.com http://www.coxfinancialnetwork.com
P.S. You can find more free reports like this one by visiting http://www.njmortgagenetwork.com .