Arizona Mortgages for Bad Credit: Adjustable Rate Mortgages

An adjustable rate mortgage is a type of mortgage available in Arizona for individuals with less than perfect credit. If you are looking into Arizona mortgages for bad credit, an adjustable rate mortgage might be a good option.

If you have bad credit, you may feel alone and like a failure. You may have trouble getting a car loan, mortgage, or even a store credit card. You may have even lost out on job opportunities due to your FICO score. This can feel isolating and embarrassing. However, you are far from alone. It is estimated that approximately 25% of credit using Americans have bad credit with a credit score below 640. In addition, the average credit score of a credit holding American is about 678, which is far from perfect. In short, you are not alone.

A variety of factors can lead to a low credit score. Divorce, job loss, a sudden change in income, or a downturn in the economy are all factors out of your control that can lower your credit score. If you find yourself in the position of having less than perfect credit, you can still qualify for a home mortgage. When you are looking for Arizona mortgages for bad credit, it is important to know and understand all of your mortgage options as well as the cost that the credit will have in the long run. One option that can work for many families is an adjustable rate mortgage.

Adjustable Rate Mortgages for Arizona mortgages for bad credit

An adjustable rate mortgage or ARM is a good options for individuals needing Arizona mortgages for bad credit. An ARM is a mortgage that is different than a 30 year mortgage in that it is for a shorter period of time, anywhere from 1 to 7 years. During that time period you have a low interest rate, usually below the prime rate. This low rate means lower payments. The lower monthly payments helps many individuals and families qualify for an ARM who would not be able to qualify for the higher payments of a traditional mortgage. After the initial period, the rate of an ARM adjusts or resets to a higher than prime rate. This will increase the monthly payment amount based on the interest rate you are being charged. Every ARM has certain maximums depending on the type of loan. There is a maximum amount you can be above the prime rate as well as a maximum number of times the loan can reset.

One of the major criticisms with adjustable rate mortgages has to do with what happens after the rate adjusts. Because the interest rate increases, the amount of your monthly payment will also increase. In the mid-2000s, the increase in payments combined with the decline in the housing market led to a large number of sub-prime foreclosures. This has led to many law makers and media outlets to criticize ARMs as being irresponsible lending practices. However, an ARM can be a good option if you are smart about how you use it.

An important thing to keep in mind with an adjustable rate mortgage and really for any Arizona mortgages for bad credit, is to not borrow more than you can afford. If you cannot afford the payment on a $250,000 mortgage at a 30 year rate, do not borrow that much using an ARM, unless you are planning to move long before your rate resets. In addition, make sure to make smart real estate choices. Before you purchase a home look at the area and the overall price history. Don’t buy unless you are relatively certain that the home will increase in value. Also, look at your credit. It may be bad now, but are you taking steps to rebuild it? If the answer is yes, then you can decide if you will be able to refinance to a 30 year mortgage before your ARM resets. If you will be able to refinance, you won’t ever have to make higher payments because your mortgage rate adjusts.

Finally, an adjustable rate mortgage isn’t only for borrowers needing Arizona mortgages for bad credit. An ARM can be a good option for many investors who are going to live in a home for a short time, fix it up, and sell it for a profit. It can also be a good mortgage option for families who will only live in the home for the initial term of the mortgage and will sell and move before it resets.

If an adjustable rate mortgage sounds like a good option for you, call a mortgage broker to learn all the details you need to know.

A broker can help you navigate the ins and outs of adjustable rate mortgages to help you choose the right loan. Down payment minimums change and so do interest rates. A broker can get you the best deal to purchase your new home, regardless of your bad credit score. Call today to learn more.

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 Home Loans with Bad Credit

Many families think that home ownership is beyond their reach because they can’t get Arizona home Loans with bad credit. However, this is simply not true as there are a variety of programs available to help borrowers with bad credit purchase a home in Arizona.

If you have been denied a home loan in the past due to bankruptcy, bad credit, or sub-prime credit, you may think that purchasing a home is out of your reach. Many borrowers don’t know that there are a variety of programs available to them, even if they have less than perfect credit. Don’t let bad credit hold you back from obtaining a new home for your family or as an investment. Learn about your options for purchase and talk with a mortgage broker.

One program that can help individuals looking for Arizona home Loans 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.

Another loan type that is available for borrowers in the market for Arizona home Loans 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 final 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.

The Truth about Bad Credit Mortgages

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 Arizona home Loans 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.

If you want to take control of your home ownership or real estate investment dreams, stop letting credit hold you back.

Call a licensed Arizona mortgage broker today. A broker can discuss your options regarding Arizona home Loans with bad credit and help you find the loan to best fit your needs. Stop waiting, call today!

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

Traditional Bank Loan or Arizona Hard Money Loan

If you have noticed lately that traditional bank loans are getting more and more difficult to get when it comes to your real estate needs, then you aren't alone. In fact, based on paperwork alone, you’re looking at a lot of time wasted. It might be worth your time to look into Arizona hard money loans for the real estate investor.

This might seem confusing. Most people don’t even know that you can get a loan without a bank, but with Arizona hard money loans, you absolutely can. And the amount of paperwork you don’t have to do will absolutely stun you. Banks made a huge mess out there, giving loans to people who shouldn't have them and now they are really cracking down and making it really difficult to get a loan if your credit isn't in tip-top shape and that’s where Arizona hard money loans come in.

No longer will you have to jump when the bank says jump, instead you can have the money you need right when you need it. Consider the types of Arizona hard money loans that you can get. You have Private money lender Arizona or you have hard money lender Arizona. Both can help you make the payment you need to get the property that you want. Whether you are looking to fix up a property or you are looking to put some money down before someone else buys the property, Arizona hard money can help you get the money that you need. You won’t even have to prove your credit score. 

Your private money lender Arizona or hard money lender Arizona doesn't mind what it is. Your credit score has nothing to do with the property you want the money for. Take the time to think about getting Arizona hard money for your next investment.

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

When Should I Use Arizona Hard Money?

The question always seems to be when should one use Arizona hard money? This is something a beginning investor would ask, especially when they see how difficult it can be to get a traditional bank loan. Not to mention the hours of paperwork you’d have to do to even be considered for one.

Many who use Arizona hard money are people who need to make a big purchase on real estate very quickly and want the money as soon as possible. They may not have the best credit either, but that’s completely fine because with Arizona hard money, credit scores don’t actually matter at all- just the property that you wish to purchase. You just want enough money to fix up the property or purchase a property. The reward of having instant money and quick turnaround far outweighs the potential interest that you might have to pay.

But what kind of Arizona hard money  do you want to borrow? There are two different types, though they are both similar. One is called private money lender Arizona, which is Arizona hard money lent to you by just one person. This could be somebody that you know or just a new investor who wants to do business with you.

The other type of Arizona hard money is hard money lender Arizona. For this type of Arizona hard money, you have a group of people who offer you a loan, not just one person.

Both types of Arizona hard money are worth the bang for your buck, you just have to decide if it is right for you. Find the kind of Arizona hard money lender that works for you. They are aware of how difficult it can be to make the decision and they are ready and willing to work with 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

Apply for a Stated Income Mortgage and Stop Renting Now!

You've been renting the same unit in a nice downtown area. Rent isn’t cheap but the area is nice and it is close to work. Your friends and family keep asking you when you will get a house. Though you never considered buying a house, you think it would be too difficult to apply for a mortgage. You know banks wouldn't approve of your credit history or irregular income situation. Although you make a comfortable living, enough to afford an expensive high-rise apartment, the bank wants to feel confident enough that you can take on a mortgage. What can you do to qualify for a mortgage then? Instead of dealing with banking institutions that most likely won’t approve of your application for a mortgage, consider applying for a Arizona stated income mortgage.

Besides applying for a Arizona stated income mortgage, there are pros and cons of buying house compared to renting. In this article, we discuss the pitfalls of renting vs. buying a home. We will also take a look at how easy it is to apply for a stated income mortgage that will get you in the house you want.

Renting vs. buying a home

Renting is seen as less of a headache when it comes to home responsibilities. If something in your home breaks, you simply call upon property maintenance. You don’t need to do these fixer upper projects on your own. Also if you plan on moving soon or not sure if your residence will be permanent, than renting is a perfect option. When you have a house, it is a much harder and tedious process to move when the circumstances call for it (for instance, relocating for a job).

Renting an apartment works for some, however there are some drawbacks. Renting can get irritating. There are many problems with renting that people don’t often think about or refuse to acknowledge.

A house generally is larger real estate and allows for more room, then an average rental unit. For instance, a house is more convenient when you have a family of four.

Renting is also often seen as throwing your money away or paying someone else to keep a roof over your head. Consequently by buying your house, you are not throwing money away. Every monthly mortgage payment you make eventually means the property will be yours. As an owner, you are then free to do whatever you want with the property – continue to live in it, sell it or rent it out.

Buying a home is a lot easier with a stated income mortgage

There are usually several hoops to jump through before you get to settle into your new home. After you submit your down payment, you are ready to apply for a mortgage. In order to get the best deal possible when it comes to payments, it is best to speak to a qualified loan professional. This is especially true when applying for alternative types of mortgages, like a Arizona stated income mortgage. However applying for a stated income mortgage, the process is often easier than a standard home loan.

When it comes to applying for a stated income mortgage, you simply state the income you are making. If you have a lot of cash upfront for a down payment, your odds of being approved for a stated income loan are even greater. The best advice is to speak to a qualified mortgage loan professional. These specialists will help you qualify for a mortgage and eventually the house you want to own.

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 8502727

How to Finance a Home with a Stated Income Mortgage

When people think of stated income mortgages, they are often confused. An Arizona stated income mortgage is different compared to a traditional mortgage. While a traditional home loan is lent through a local bank, a stated income mortgage is lent through a private lending company. In this post we will take a look at whether a stated income mortgage is right for you and your situation. Additionally, we will discuss how a stated income mortgage works and where to find one.

Are you a candidate for a stated income mortgage?

Take from this situation: You found a home you really want. You have enough money saved for a down payment, but you need to find an institution that will lend you the additional amount of the house. Who do you lend from and more importantly, would you qualify as a borrower?

Well, it depends on your employment status, credit history and other past financial decisions. In a typical qualification process, the borrower must reveal his/her income and current employment. However there may be situations when you may not wish to use your employment status to qualify for a mortgage loan. You may be self-employed, like for instance, a contractor or insurance agent. Due to the ups and downs of income, it is hard for a bank to label you as a “low-risk” borrower. At this point you should look at another type of mortgage, known as a stated income mortgage.

A bank does not lend stated income mortgages. Instead they lend standard or traditional mortgages, which means that in order to be approved you must retain their requirements. A banking institution’s requirements for a home loan vary slightly between banks, but for the most part requirements are the same. For a typical loan it is ideal to have a standard paycheck from an employer, a long-term credit history and a high credit score. If you do not possess the requirements necessary to obtain a loan from the bank, there are other ways in which to get a mortgage.

How does a stated income mortgage work?

The best way to find out how a stated income mortgage works is to speak to private lenders. There are many different types of private lending. Some private lenders are individuals while others are rather large companies. There is really no difference in whether a private lending company is large or small, however it is important that you are comfortable with your lender. Also when searching for a private lender, be aware of the advice you are given and whether they specialize in the area of home loans. Better yet, make sure the company or individual you are dealing with specializes specifically in stated income mortgages.

Where do I find a stated income mortgage?

A company that specializes in stated income mortgages is Level4Funding. Not only do the people at Level4Funding knowledgeable in the area of stated income mortgages, they will help you buy the house you really want. Don’t delay. Call us today at 623-582-4444!

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

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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