Wrecked Credit History? Consider Arizona Home Loans with Bad Credit

People can sometimes get caught up with financial issues by tending to apply for unnecessary loans, max-out credit cards or borrow emergency money from lending firms. Due to unexpected expenses, individuals will sometimes have to delay payments or worse, they will default on their debts. Doing so will now cause these people to obtain a very poor credit score.

When the time comes that you need to apply for another loan or you want to apply for a housing loan, you will be in trouble. When applying for a housing loan or a mortgage, lenders and banks are very scrupulous in checking you credit history. These financing agencies will have to dig through all your finances including credit card bills, bank reports, present loans, etc. Before you can get your loan application approved, they will evaluate your financial situation and rate your resulting credit performance.

And yes, because of these unpaid loans and delays in payments, you will likely to tagged as having a wrecked credit history. You will then have to consider applying for Arizona home Loans with bad credit.

Filing an application for a mortgage involves having to improve or clear up your bad credit history. These types of loans are best suited for people with the following issues:

• A very unfavorable credit history
• People who still have existing home loans
• People who are drowning in too much debt
• Borrowers who have huge bills from credit card companies
• People who are caught up in personal loan defaults and amount over dues
• Individuals whose loan applications have been previously declined by other banks and lenders

Applying for Arizona home Loans with bad credit gives people with poor credit history to take advantage of subprime mortgage loans, that enable them to finally get an application approved. However there is a slight catch. Since the lender is the one burdened with higher risk, it will cost the borrower a higher interest rate.

But don't let that stop you. When a subprime mortgage is used responsibly, a lower interest rate may be allowed. The State offers responsible borrowers what they refer to as an Adjustable Rate Mortgage or ARM. This allows the borrowers to enjoy a lower interest rate in a prescribed span of time, specifically 1 to 7 years. After the lock-in period agreed upon, the interest will eventually increase to a higher rate.

Further by using an ARM, the interest rate can be leveraged. The homeowner can have the loan refinanced that will result in a lower mortgage rate, or simply apply for another Adjustable Rate Mortgage.

Applying for Arizona home Loans with bad credit is somethingto be taken seriously. 

If the borrower has another mortgage default, it would really difficult for another loan application to be approved. Make sure you are following the right steps to apply of a mortgage by contacting us at Level 4 Funding. Don't hesitate to give one of our knowledge loan professionals a call. Contact us at 623-582-4444 and speak to one of our friendly associates.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

How to Catch a Great Deal on an Arizona Mortgage with Bad Credit

When we look around where we are currently staying, we are always wishing to be able to move in a great place with breathtaking outdoor views and local quality cuisine. Some of these places can be found in Arizona and this is a great place to raise a family, but how can anyone do that if they have a bad credit rating? How can you give your family a home in a place they have always dreamt of? Do not fret because you can always apply for an Arizona mortgage with bad credit. A bad credit loan allows individuals to find a mortgage even with their bad credit rating. Although interested borrowers will need patience and perseverance, due to the difficultly in finding a mortgage if you have a bad credit record. However, there are some steps you can use to increase you chance of being approved for an Arizona mortgage with bad credit.

• File an application to lenders who are not very particular with credit scoring. This is because most lenders use a computer-based system that is called credit scoring, to assess home loan applications. The data they collect from the application is given a rating. If the computer shows a score with bad risks, the application is automatically declined before an actual person has a chance to hear the loaner’s story. If you apply to a lender who does not use credit scoring, a real person assesses the application and any past reasons for having a bad credit. This person will then evaluate the loaner’s personal situation, which will be used in the decision-making process.
• Avoid mortgage insurances because if you apply for a home loan, you will be required to pass two approvals. The first one is from the lender and the other one is from the mortgage insurer who protects the lender in case you fail to pay the loan.
• Seek professional advice regarding your credit report. There are a number of credit repair specialists or agencies that can help clean up your credit report. Speak to them or to a solicitor if there are any possibilities of removing bad entries on your credit report.
• Do not shop for too many lenders. It is a must that you do not apply to lots of lenders when you search for a home loan. This is because each time you turn in an application, it is recorded on your credit report. If any lenders happen to reject your application, it will make a big impact on your credit report.
• Apply for an FHA-insured loan provided by an FHA-approved lender. Because it is government-guaranteed, they allow lenders to serve clients who are considered “high-risk” because of an undesirable credit report. The FHA does not follow strict guidelines used by conventional lenders. 

They also require a smaller down payment compared to conventional loans. The funds can also be borrowed or be given as a gift by a relative or a non-profit financing agency.

These steps can help individuals planning to catch a deal with an Arizona mortgage with bad credit. After being approved for a loan, you should work hard to prove to a lender that your bad credit is just a part of your past and in addition, you will try really hard to avoid coming across the same problems in the future. At Level 4 Funding, we believe that taking these steps to apply for a loan is worth it if you are looking for a home in Arizona. Call us today at 623-582-4444.

Stuck Applying for Arizona Bad credit home loans? We got you covered!

                The majority of us are not happy with our way of living and the place we are staying. But no matter how hard we try, we cannot easily transfer from one location to another. We are content to stay where we are because it will mean that another loan application must be made. This is easy for those who have a good credit rating but those who have a bad credit rating, may find it hard to look for their dream home environment. However there is a solution, which is to look for Arizona bad credit home loans. These types of loans allow borrowers to obtain a home loan within their tastes, even with bad credit history.

With a bad credit home mortgage, it seems as though individuals who want to purchase a new Arizona home have hit the jackpot. Because Arizona is a dream place for nearly all Americans with its beautiful weather conditions, breathtaking natural views and delicious food, they could not ask for more. If prospective buyers are still having a hard time with the application process, here are some suggestions to use for worry free Arizona bad credit home loans.

• Check credit reports  Because all Americans are entitled to have a free yearly credit report from the Federal Trade Commission, borrowers just need to ensure that their report is accurate before they can pass for a mortgage. If the FTC found any errors or inconsistency in the reports, they could report it to the credit company and provide them with documentation to support their plea.
• Expect to pay more interest Because of a borrower's bad credit report, they should expect to pay more for their mortgage. Borrowers need to prepare to pay for a higher interest rate or an ARM (Adjustable Rate Mortgage) with a changing interest rate
• Eliminate other debt Due to a high debt to income ratio, prospective borrowers will have a hard time to achieving a proper mortgage. All credit balances should be paid off so that new buyers can be approved for a home loan.
• Demonstrate a stable income New homebuyers need to prove to their lender that their bad credit rating is a thing of the past. Also it is wise to reinstate how you have changed the ways you handle your loans. Borrowers should guarantee lenders that their job is stable and they are able to make timely payments.
• Write down explanations regarding the negative items There are times where it is best to explain to lenders the reason behind problems in paying bills. It is best to do explain problems before applying for an application. Additionally, a good reason to do this is so lenders will have an understanding that borrowers problems are in the past, which may result in an approved loan application.
• Consider government programs They are loans guaranteed by the federal government, which likely will have flexible credit requirements. This is perfect for individuals with bad credit ratings.
• Immediately look for a cosigner New homebuyers could ask family members to cosign for them, which might help them qualify for a mortgage despite bad credit. Borrowers just need to keep in mind that if they fail to pay their debt, their cosigner is the one who will shoulder the remaining payments.

For those who are considering Arizona bad credit home loans, do not think twice because Arizona is a great place for building and raising a family. Dennis Dahlberg is indeed a well-known family man and knowledge loan professional. Give him a call today at 623-582-4444 to learn more about a bad credit loans and how you can get approved.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona bad credit mortgage lenders: Who to Call When You Need Help Qualifying for a Home Loan

If you have bad credit you probably are not able to qualify for a traditional home loan through your bank. However, despite your credit score, there are many Arizona bad credit mortgage lenders that can work with you to find different loan types and programs to purchase a home.

Bad credit can affect your entire life. You may feel that your credit score is hanging over your head, keeping you from qualifying for car loans, mortgages, credit cards, and may even keep your from getting certain jobs. If your credit score is below 620, you probably think that owning a home is beyond your reach. As depressed as you may feel about your credit, it is important to know that you are not alone. Nearly 25% of credit using Americans have what is classified as sub-prime credit, meaning that their FICO score is below 620. In addition, the average credit score is about 640 meaning that most Americans do not have an “excellent” or even “good” credit rating.

With many Americans falling into the “fair” or “poor” credit classifications, there are many Arizona bad credit mortgage lenders that can help sub-prime borrowers secure a home loan to purchase a residence or investment property. If you are searching for a bad credit home loan, it is important to know all of your options as far as loan types. If you have a less than stellar credit rating your best bets for a home loan are an FHA loan or an adjustable rate mortgage.

An FHA loan is a loan that is backed by the federal housing administration. This is a branch of the federal government. The FHA does not give out loans. Rather, they give the banks or other lending institutions mortgage security. Once a borrower is approved by the federal housing administration, the government backs, or insures the loan. If the borrower ends up defaulting, the lender can recoup its lost funds from the FHA. An FHA loan can benefit you as a bad credit borrower because banks will be more likely to lend money to you. Also, the FHA has specific programs like “Home in 5” or the “Home Affordable Refinance Program” that are meant to benefit borrowers who may not have good enough credit for a traditional mortgage. Some things to keep in mind about an FHA loan is that the credit will cost you more than a traditional loan. To secure the loan you will have to make monthly mortgage insurance premiums or MIP payments. These can add anywhere from 80 to 300 dollars a month to your housing payments. However, there are options as far as seller assistance or up-front pay down programs you may want to look into to help reduce your monthly mortgage payments. In addition, you will need to make a 3.5% down payment when you purchase the home so make sure you have this amount in savings.

Another type of loan you will want to discuss with your Arizona bad credit mortgage lenders is an adjustable rate mortgage or ARM.  An adjustable rate mortgage is a mortgage with an interest rate that adjusts after a fixed period. The fixed period is anywhere from 1 to 7 years, with the most common terms being 3 or 5 years. During the initial fixed period, the interest rate on the loan is very low, usually lower than prime. This means that your monthly mortgage payments will be low. After the fixed term, the rate will adjust to a higher interest rate. This will increase your monthly payment amount due to the higher interest payments. When your interest rate does reset, it will be to a higher than prime rate. An ARM is a good option for bad credit borrowers who are planning on moving before the rate resets, or who are in the process of rebuilding their credit and will be able to refinance to a traditional mortgage at the end of the fixed rate period. One important note about an adjustable rate mortgage is that it will require a 10% down payment so make sure that you have that to put down on your home.

Arizona bad credit mortgage lenders and the Media

Many borrowers with bad credit are still leery of investing in bad credit mortgage programs due to some of the bad press that has surrounded them. Bad credit mortgages and loans to sub-prime borrowers have been largely blamed for the housing crisis of the mid 2000s which resulted in many borrowers losing their homes due to foreclosure. Although some bad credit loans may have been to blame, it is important to note that other circumstances like an economic recession and falling housing values also played a key role in the foreclosure crisis. However, due to the negative press many banks shy away from sub-prime borrowers.

If you have been turned away by a bank, don’t let that keep you from home ownership.

Banks are not the only lending institutions out there. There are many private investment firms and brokerage companies that will act as Arizona bad credit mortgage lenders for individuals and families looking to purchase real estate in Arizona. A mortgage broker or mortgage company can help you find the right loan product and take the next steps in purchasing a new home.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

How to buy a house with bad credit in Arizona

Adjustable Rate Mortgages and FHA Loans: How to buy a house with bad credit in Arizona

If you are have bad credit, you have probably found yourself wondering How to buy a house with bad credit in Arizona. It may seem hopeless, however thanks tospecific federal programs and special mortgage loans home ownership can bewithin your reach.

If you have bad credit, you have probably been turned away by a bank if you applied for a home loan. You may think that owning a home is impossible. However, there are a number of programs that can help you qualify for a home loan. The best first step is to ditch the bank and find a company that specializes in helping individuals and families figure out How to buy a house with bad credit in Arizona. A good first stop is a mortgage broker. Unlike a bank, the broker does not actually loan out the money for a home loan. Instead he shops different banks to help you find the best loan for your purchase and credit situation. This allows more flexibility in terms of the types of loans that the broker can find as well as lenders. A mortgage broker or mortgage company can act as your intermediary and usually get you better loans and better terms than you could get by going straight to a bank, especially if you have bad credit.

Once you have found a mortgage broker or private mortgage company, you will begin to figure out How to buy a house with bad credit in Arizona. Your mortgage professional will give you a variety of options including conventional loans, FHA loans, and adjustable rate mortgages. It is important that you understand the differences in the types of loans as well as the terms of the loans to help you make the best decision for how to purchase your home.

Types of Bad Credit Loans in Arizona

One type of loan you mortgage investor will most likely discuss with you is a conventional loan. A conventional loan is a traditional 30 year mortgage with a fixed interest rates. Most current programs require at least at 5% down payment. This is the loan most often given out by banks and is usually the hardest to qualify for with bad credit. However, your broker may know of private equity companies and investors that give out conventional mortgages for sub-prime borrowers. You will usually end up paying a higher interest rate based on your low credit score, but the interest rate is fixed for the life of the loan. Also, if you plan on using on time mortgage payments as a way to rebuild your credit, you can refinance later when interest rates are low.

Another type of loan that is offered to bad credit borrowers is an FHA loan. An FHA loan is a government backed loan. Each month you pay extra insurance against default. The loan is secured by the Federal government so lenders are more likely to give them to borrowers with bad credit. In order to qualify for an FHA loan you will need to have 3.5% of the purchase price to put down. You will also pay extra for monthly mortgage insurance which can vary based on the amount of your loan. For many bad credit borrowers an FHA loan is a good path for home ownership.

A third type of loan your mortgage professional will discuss is an adjustable rate mortgage or ARM. An ARM is a mortgage that has a fixed interest rate for a set period of 1 to 7 years. During that period you will pay a relatively low interest rate, usually lower than the prime rate. After the initial fixed period, the rate will reset to a higher rate and your mortgage payment will increase. Borrowers with bad credit can take advantage of this program as a way to own a home because the initial payments are low due to the low interest rates. Keep in mind that after the rate resets your payment will increase significantly. An ARM is a good option for borrowers who plan on either selling or refinancing before the rate resets.

Stop asking yourself How to buy a house with bad credit in Arizona and find a Arizona Mortgage Broker to help answer that question today.

Although these are a few types of loan available for bad credit borrowers in Arizona, there are many other options like private and hard money loans. In addition, state and federal programs change frequently so there are always new paths to homeownership. Stop letting your credit score stand in the way of owning your dream home. Contact a mortgage broker or investment firm to take the next steps in find the perfect home for your family, and the perfect home loan for your wallet.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Taking a Look at Arizona Homes - loans for bad credit

Bad credit is one of the deciding factors whether an institution will grant you a home loan or not. A bad credit rating is an indication of an individual’s credit history, which specifies that the borrower is carrying a higher credit risk. This can be identified by the low credit score based on the credit history of an individual. The credit history of a person depends on several factors such as the amount borrowed, the availability of the credit amount remaining and the borrower’s punctuality in payments. An individual will only gain bad credit if they're unable to make payments on regular basis or fail to pay a loan for a specified length of time. And if you have a bad credit that most likely means you will have a hard time dealing with payments and have a difficult time obtaining loans from financial agencies.

Although an individual had already filed for bankruptcy or have gone through a foreclosure, most cannot deny the fact that a home is a basic necessity. This thinking pushes people to look for ways to retrieve a home loan just to secure a shelter for their family, no matter how costly the downsides. Downsides such as the number of years and odd jobs prospective homeowners must obtain to take to afford a new home. However the best option to consider would be to look for Arizona homes loans with bad credit using from various agencies. Specifically loan agencies that offer subprime mortgage options.

A subprime mortgage is a type of mortgage that is usually provided to borrowers that have higher risk because of a poor credit score. Individuals with credit score lower than 640 are most likely entitled to a subprime mortgage. Yet with the great risk lenders assume from borrowers, the interest rate is expected to be slightly higher. And though many critics find interest rates on subprime mortgages to be unfair, many borrowers defend this notion for the reason that it is the best option available to qualify for a home loan.

Aside from this, borrowers can choose from several different types of subprime mortgages available. Each type of loan has strong and weak points, especially if new homeowners plan to apply for Arizona homes loans for bad credit such as:

• Adjustable Rate Mortgage (ARM) – This type of mortgage starts at a low-interest rate that is typically in a lower prime rate of 2-3%. This will be adjusted after 1 to 5 years to a much higher rate, with 10-20% depending on market conditions. However an ARM is the good choice if you are in the process of rebuilding your credit score. You will be able to refinance a traditional loan even before the period of adjustment. In addition an ARM is considered a smart alternative if you are planning to buy a short-term home, whether as a 'fix and flip' real estate investment or if you have plans to move out on short notice.
• Hard money loan – This type of loan is offered through a group of investors to borrowers, not through a traditional bank. This short-term loan is designed specifically for ‘fix and flip’ real estate. A hard money loan only lasts for a couple of years.
• FHA insured loan – This loan is backed by the federal government and offers low interests rates for borrowers. A FHA insurance loan also provides options for low down payment. It only requires 3.5% down payment, which makes this loan a great option for borrowers with little to no amount of liquid cash resources. Borrowers should also consider this type of loan if the first home is sold and a second home is purchased with no down payment in hand. Also since the government insures the loan, the borrower will only pay the primary mortgage insurance (PMI). The payment ranges between 80 and a few hundred dollars that could increase your monthly mortgage dues dramatically. And the payment is done until you had paid the 20% of your home loan.

Provided that there are many options available for Arizona homes loans for bad credit is to talk with a mortgage broker. Specifically, the friendly professionals at Level 4 Funding are very knowledgeable about the current trends in housing loans and mortgages. We will dissect your individual financial situation and help you qualify for the loan of your choice.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Bad Credit Home Loans - Are They Right for You?

Loans have been one of our lifesavers in times of financial trouble. It allows us to have the instant money we need for whatever purpose it may serve. However, the downside of loans is the interest rate that comes along with it. We cannot deny the fact that interest rates on loans could affect the borrowers’ ability to settle it. Yet, many still opt to get loans regardless of the interest rate for important aspects of acquiring a property or for home loans.

One of the loans that most people get with bad credit but still wish to get a home loan is the adjustable rate mortgage or ARM. This is the most common type of subprime mortgage for Arizona bad credit home loans that borrower or buyers can rely on. A subprime mortgage is given to the borrowers with a low credit rating. A person who has a low credit rating is not entitled to receive a conventional mortgage for the reason that they may have a hard time paying the loan back on time. Therefore, a subprime mortgage would be more suitable in case, even if the interest may be higher. To help you ease up in settling the home loan, adjustable rate mortgage is endorsed.

The interest rate under adjustable mortgage rate (ARM) varies in accordance with a certain scale. At first the interest rate is usually fixed for a certain period of time (in-between 1-7 years), and is reset periodically with the rate being adjusted to a higher level at the end of the term. Although ARM had a bad reputation in the previous years as it greatly contributed to foreclosure crisis, borrowers should keep in mind a few important factors. One factor was that these variable-rate mortgages were originally given to borrowers with bad credit that had overextended themselves by buying homes that were beyond their budget. And in addition, once the loan has been reset, they could no longer afford to pay their monthly dues.

However, Arizona bad credit home loans under ARM can still refinance either by a lower fixed rate mortgage or another adjustable rate mortgage. This can be done despite the many adjustments made to rates of an ARM. If you take advantage of the low-interest rate that ARM provides, you will be able to save thousands of dollars on mortgage interest, which will allow you to pay off your loan balance.  You can pay your home loans sooner than expected and significantly less interest will be paid.

A typical mortgage makes you pay the majority of the interest in the first half of the loan’s term. To further avoid the blunders of paying off a costly traditional mortgage, consider a few situations listed below. These tactics will help you realize that an adjustable mortgage rate is much more flexible than the traditional mortgage.

•    Adjustable mortgage rates help you rebuild your credit score. Let’s just say that you have a bad credit score but you’re working on to improve it. ARM is the best option to re-establish your credit score, especially if you’re qualified to get refinancing before the rate adjusts

.

•    Adjustable mortgage rate allows you to save money if you plan to sell your property before the interest rate hikes.  If you plan to be living in your house in a short span of time and have plans to sell it, better do it while the rate is at its lowest. This will prevent you from paying higher interest rates after the reset.

•    Adjustable mortgage rate is the right plan for short-term investment. Most of the people today are in a buy and sell scheme. They bought an old property, have it renovated and then sold it to earn bucks. If the property bought is under ARM this could help you save money as you renovate it, since chances are you’re not going to pay the new interest rate once it has adjusted at the end of the term.

Though some risk can be encountered in Arizona bad credit mortgage with an adjustable mortgage rate enrolled, this can be minimized through smart investments. Keep in mind that overextending in ARM could lead to default or worse, foreclosure. ARM often allows borrowers or buyers to acquire a home that is beyond what they could afford with a traditional mortgage. This is because the lender bases the ability of the borrowers to pay off the monthly dues. However once the rate is reset, the dilemma is in paying off those dues once they arrive. To get the latest gist about bad credit home loans and applicable subprime mortgage, it’s best to talk to a trusted mortgage broker at Level 4 Funding.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Hard Money Might Be the Choice for You

If you are looking for a way to get the money you need for a property you want to purchase, then Arizona hard money might be the right thing for you. Forget the traditional bank loan that can cause such aggravation. You don’t need to wait around for your money or deal with heavy paperwork. You can have your Arizona hard money quickly without hassle and without any annoyance that a bank might give you.

As banks tighten up their vaults, customers like you really miss out because these banks aren't willing to take the risk. They want to keep their money, so even if you do get a bank to give you a loan, you may not get the amount you want or even need to make the purchase that you need on the property that you want to either revamp or flat out buy. You shouldn't have to be at the beck and call of the bank, you should be able to get your Arizona hard money loan and be on your way.

Arizona hard money does not actually require you to sign up with the bank.

An Arizona hard money loan is independent of banks and can be distributed by either private moneylender Arizona or hard money lender Arizona. 

They are both similar kinds of loans with only a few differences. For one, private money lender in Arizona is just a one person loan. The person who gives you the loan could be somebody that you know or it might just be a private investor who isn't associated with a bank. Meanwhile, a hard money lender Arizona is a group of people who want to make an investment. Whichever you choose, we know that Arizona hard money will help you get the property that you want right now.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027