How to buy a house with bad credit in Arizona

How to buy a house with bad credit in Arizona: Analyzing the Risks and Benefits of a Sub-Prime Loan

Sub-prime lending and loan types that have been blamed for triggering the housing collapse in the mid-2000s. However, with more and more borrowers wondering how to buy a house with bad credit in Arizona, these loans are making a comeback. Many experts are wondering if tougher regulations can keep them safer.

Borrowers with bad credit or even credit blips are often turned down for home mortgages by traditional banks. Some bad credit borrowers have been thwarted for years by banks that have virtually shut down mortgage lending after the financial melt-down and housing crisis in the mid-2000s. A growing number of these individuals that are deemed “too risky” or credit impaired by traditional banks are asking questions like how to buy a house with bad credit in Arizona. With the right lending company, many are finding that this is not an impossible task.

New sub-prime loan products are hitting the market almost daily and helping to answer the question of how to buy a house with bad credit in Arizona. Unlike some of the more risky loans given out by banks in the early 2000s, the new sub-prime loans are more heavily regulated and require more documentation. They require down payments as well as documentation that the borrower can make monthly payments. In addition, some reformed sub-prime loans are backed by the government and may even have lower interest rates (at least initially) that traditional mortgage options.

There are several types of sub-prime loans including adjustable rate mortgages, hard money loans, FHA loans, and a number of other private loans offered by equity firms and private investors. If you are in the market for a sub-prime loan, it is important to know exactly what the terms of your loan are and to be smart about the type of loan that you choose.

Danger, Beware, Danger – Avoiding Risky Arizona Mortgage Lenders

If you are in the process of navigating the sub-prime mortgage market, make sure to find a mortgage broker or lending firm that has a good reputation. Foreign and domestic investors are pouring billions of dollars into the sub-prime lending market. While there are many, many reputable private equity firms, there are others that will take advantage of the desperation of a borrower with bad credit.

When you investigate a lending firm, make sure that they operate under a valid broker’s license and are qualified to offer the loan products they sell. This is especially important if you are working with a foreign investment firm or a private equity firm. When they are helping you figure out how to buy a house with bad credit in Arizona, the firm should discuss more than just the interest rate with you. You should also know what your loan is called, the exact terms of you loan, the interest rate, and your estimated monthly payments including interest, taxes, and insurance. You should also be asked for some proof of income to insure that you are able to make your monthly payments. If you have bad credit, you will most likely pay more for the loan in terms of interest, generally about 6 to 9 percent but the rate should not be near the usurious loans prior to 2008, when rates often exceeded 15%.

Once you are offered a loan product, you should sit down and really look at your monthly budget. Think about if you will be able to make the monthly payment. If the answer is yes, then you should also consider your long term goals as well as your credit history. If you have bad credit, it is important to think about if this will change. On time mortgage payments are a great way to rebuild your credit and you may be able to refinance to a lower interest rate in the future. Also, consider if the home you are buying will be a short or long term investment and estimate and profit you may make, after the higher interest rate is taken into account. Your broker should be able to give you detailed fee sheets with different financial, down-payment, and interest rate options so you can see all the numbers in black and white.

Stop wondering how to buy a house with bad credit in 

Arizona and start making your dreams come true.

Although it is important to make sure you know what you are getting into with a bad credit home loan, it should not scare you away from purchasing a home. Many Arizona Home Loan lenders and equity firms are there to lend a helping hand to purchase your dream home. Making sure you are aware of all the financial ramifications will help you make the right decision for you and your family. Contact an Arizona mortgage broker or equity firm to get started today. Their licensed mortgage professionals can help you analyze the risks and benefits of sub-prime loans and choose the right product for your home purchase.

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

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

The Truth about Getting an Arizona Mortgage with Bad Credit

If you are trying to get an Arizona mortgage with bad credit, it is important that you know all of your options. There are several programs available to help Arizona borrowers obtain a home mortgage, even if they have bad credit.

If you have a credit score of less than 640, you are considered a sub-prime borrower in terms of credit worthiness. This can impact your ability to obtain a home loan, care loan, or even a store credit card. You may feel like there is no way out of your situation. However, you are not alone. Nearly 42.5 million Americans have sub-prime credit. In addition, the average credit score is about 678, meaning that the average American has less than stellar credit.

If you find yourself being denied a home loan due to your credit score, there are a number of options to help you find an Arizona mortgage with bad credit. One loan type that is available for borrowers in the market for an Arizona mortgage with bad credit is a hard money loan. A hard money loan is designed as an investment strategy and isn't a good option for owning a home you intend to live in long term. A hard money loan is backed by a group of investors, rather than a bank. The investors will look at your property purchase as well as renovation plans to determine if the loan is a good investment. If you have bad credit they are more likely than a bank to look past your credit score if you have a sound investment idea. Hard money loans are short term loans primarily designed to fix and flip a property for a profit.

Adjustable Rate Mortgages, FHA Loans, and Hybrid Programs

Another type of loan a borrower in Arizona with bad credit might consider is an adjustable rate mortgage or ARM. An adjustable rate mortgage is a short term mortgage with a term of anywhere from 1 to 7 years. During your initial term the interest rate on your mortgage is very low, usually below the prime rate. This makes your payment relatively low as well. The lower monthly payment allows borrowers with bad credit to qualify when they may not be able to for a traditional 30 year loan. After the initial term of you loan, the interest rate resets and your payment may be higher. This can be a good option for someone who is on the road to repairing his credit and will be able to refinance to a 30 year mortgage at the end of the adjustable rate term. One thing to keep in mind with an ARM is that they require a 10% down-payment. This helps ensure that the property value will not drop significantly below the loan amount.

A final type of loan that can help individuals looking for an Arizona mortgage with bad credit qualify to purchase a home is an FHA loan. FHA stands for Federal Housing Administration and this entity gives out a type of government backed loan. Borrowers are only required to make a 3.5% down-payment so it can help keep some cash in your pocket. In addition, the loan is insured by the federal government so banks are more willing to lend to sub-prime borrowers. This insurance will cost you though. Be aware that if you take out an FHA loan, you will be required to pay make PMI payments. These can be anywhere from 80 to over 200 dollars a month depending on the amount of your loan. You will make them until the loan amount that you have is less than 80 percent of your purchase price. The PMI payments are a type of insurance you pay to help secure the investment in case of default.

A less well known type of loan for borrowers with bad credit is an FHA hybrid loan. This loan type combines the government insurance of an FHA loan with the low interest rates of an ARM. This loan does not require as large of a down payment as a traditional ARM and there are also limits on the amount that your interest rate can increase once the rate resets. The Federal Housing Administration controls the market conditions of these loans to make sure that even when it resets to the higher amount, the payment does not rise as significantly as with a traditional ARM.

If you have badcredit and are in the market for a home loan, talk with an Arizona mortgage broker to discuss your options.

A home loan can be a great way to rebuild your credit and put you on the path to having more borrowing capacity. If a home loan seems like a good option, talk with a broker to discuss the specifics on the loan type you are applying for and to find the right program and loan for you. 

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

Qualifying for an Arizona Mortgage with Bad Credit

If you have less than perfect credit, you can still purchase a home in the Grand Canyon State. There are many options for borrowers looking to find an Arizona mortgage with bad credit. Learn about the different programs available and how to qualify for each type of loan to make your real estate dreams a reality.

Having bad credit can seem like an impossible situation. If you have a bad credit score, you will have trouble qualifying for a mortgage, getting a car loan, or even obtaining a store credit card. You may even have trouble finding a new job because many employers run your credit score. The only way to improve your credit is to make on time payments which is impossible if you can’t qualify for credit to make payments on. You may feel like there is no way out. Luckily, there are programs that allow applicants to obtain an Arizona mortgage with bad credit. A mortgage is a great way to begin to rebuild your credit history.

A bad credit score in terms of obtaining a home loan is classified to be at or below about 640, but this has varied with time and location. However, according to national credit bureaus, the average American’s credit score is around 678, meaning that most people don’t have perfect credit. If you have bad credit, there are a number of events that could have gotten you there that are beyond your control. Divorce, job loss, inability to make mortgage payments due to an over-inflated housing market, and the recent recession are all factors that have negatively impacted may people’s credit scores.

If you are looking for an Arizona mortgage with bad credit you are not alone. Approximately 42 million Americans have a sub-prime credit score. Don’t let your bad credit keep you from owning a home when there are so many bad credit loan programs available to Arizona residents.

Types of  Arizona Loans for Borrowers with Bad Credit

One loan type that is available for borrowers in the market for an Arizona mortgage with bad credit is an adjustable rate mortgage or ARM. An adjustable rate mortgage is a short term mortgage with a term of anywhere from 1 to 7 years. During your initial term the interest rate on your mortgage is very low, usually below the prime rate. This makes your payment relatively low as well. The lower monthly payment allows borrowers with bad credit to qualify when they may not be able to for a traditional 30 year loan. After the initial term of you loan, the interest rate resets and your payment may be higher. This can be a good option for someone who is on the road to repairing his credit and will be able to refinance to a 30 year mortgage at the end of the adjustable rate term. One thing to keep in mind with an ARM is that they require a 10% down-payment. This helps ensure that the property value will not drop significantly below the loan amount.

A second type of program that a borrower in Arizona with bad credit might consider is a hard money loan. A hard money loan is designed as an investment strategy and isn’t a good option for owning a home you intend to live in long term. A hard money loan is backed by a group of investors, rather than a bank. The investors will look at your property purchase as well as renovation plans to determine if the loan is a good investment. If you have bad credit they are more likely than a bank to look past your credit score if you have a sound investment idea. Hard money loans are short term loans primarily designed to fix and flip a property for a profit.

A final type of loan that can help individuals looking for an Arizona mortgage with bad credit qualify to purchase a home is an FHA loan. FHA stands for Federal Housing Administration and this entity gives out a type of government backed loan. Borrowers are only required to make a 3.5% down-payment so it can help keep some cash in your pocket. In addition, the loan is insured by the federal government so banks are more willing to lend to sub-prime borrowers. This insurance will cost you though. Be aware that if you take out an FHA loan, you will be required to pay make PMI payments. These can be anywhere from 80 to over 200 dollars a month depending on the amount of your loan. You will make them until the loan amount that you have is less than 80 percent of your purchase price. The PMI payments are a type of insurance you pay to help secure the investment in case of default.

Talk with a mortgage broker to determine the best fit for your home buying needs.

Programs and loan types are constantly evolving and changing. A broker can help you choose the right program to fit your financial needs. 

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