Consider Accredited Home Lenders when Financing Your Home
If you are thinking about buying a home, you may believe the only way to secure financing is to go through a bank. But if you have damaged credit or little upfront cash, your bank may turn you down. So what do you do next? Resign yourself to paying rent for the rest of your life? In fact, there are a variety of non-traditional lenders who can help you when the bank turns you down. Look for an accredited home lender to finance your dream home.
To get a home loan from many banks, you need to have above-average credit along with a down payment of up to 20 percent of the home’s market value. But approximately 40 percent of the population of the United States has a credit score below 700. (700 or above is considered a “good” credit rating.) Also, banks rarely approve loans for alternative housing such as a mobile home.
An accredited home lender generally specializes in sub-prime mortgages. They do it all: they originate, finance, sell, securitize, and service their loans. Because you’re cutting out the middleman and dealing with the lender directly, you can oftentimes get approval on a loan–even if you’re not considered a good risk by the bank. Why is an accredited home lender so confident? The terms of the loan are in their favor, as they usually charge higher interest rates. Plus, your house then acts as collateral for the loan, and they can sell it to recoup any losses if you default.
Dinged Credit? Find an Accredited Home Lender