Subprime Christian Home Loan
Subprime Christian home loans can help the person with "less than perfect credit" get financing for their property. Regardless of the credit score, there are many legitimate lenders who will offer a subprime home loan to someone who is seeking to purchase a specific property. However, when seeking appropriate financing, one should be cautious and read carefully the contract terms as there are some illegitimate lenders who prey on the naive and unknowledgeable. This type of mortgage is designed for the person with bad credit. Those who are candidates typically have a credit score lower than 620, a qualifying debt-to-income ratio of 50% or higher, have had more than two 30-day delinquent debt payments in the past 12 months, or have declared bankruptcy in the last 60 months. In addition to any of the above qualifications, if there is a limited ability to pay monthly expenses, the person may want to look into this type of mortgage to purchase their house.
Similar to other loans, financing for high risk applicants can come in various forms. For example, there are subprime home loans offered at 15- and 30-year fixed rates, adjustable rate mortgages (ARMs) and fixed period ARMs. In addition, some lenders will offer reduced pricing options and rate reductions for homeowners who make their payments on time every month. Lenders also will look beyond a credit history at the collateral that currently is available, as well as at the person's capacity to pay the subprime home loan. Therefore, regardless of a past credit history, there is hope for those who want to purchase property. If someone is interested in receiving these funds to finance their house, they can apply online. Many websites offer an option for those who are applying, wherein an online application can be completed and will then be matched with lenders who meet the borrower's needs.
The lenders will then contact the potential borrower and offer rates and terms based on the type of funding for which the borrower may qualify. One should be cautious, however, when seeking subprime home loans from lenders, as there are known to be illegitimate brokerages that prey on those with bad credit. A subprime home loan can be a viable option for the person with poor credit. "For God, who commanded the light to shine out of darkness, hath shined in our hearts, to give the light of the knowledge of the glory of God in the face of Jesus Christ" (2 Corinthians 4:6). Regardless of how the person got themselves into the financial situation, there is always the option of bettering a credit situation. If used wisely, high risk borrowing can help someone establish a better financial future when purchasing a home and making timely payments on their debts.
Low cost home loans are now available through the Internet which makes searching even easier. Before the Internet, a prospective homebuyer had to use his or her telephone to research the types of low cost home loans and their terms. Now a person can do the same research within minutes through a home computer. A person can compare rates, terms, and services of several lenders and decide which one offers the best deal.
Before a person does research, figure out personal desires and personal budget. Some sites will offer worksheets and calculators to help determine income base and what a person can afford. Someone can be prequalified for low cost home loans before a person begins house hunting. That way they can have a realistic idea of what kind of financing to get. Then a person will avoid the disappointment of finding the house of their dreams that they cannot qualify for. It is important to look at all options before making any decisions. A good financial officer will be able to explain all the options for each specific situation. Know all the details of each option presented therefore avoiding regrets later when the loan is signed.
With prequalification in hand, a person can confidently go house hunting. When a person finds that dream home, they are ready to settle the deal and apply for the financing. Although each low cost home loan process can take a few days, by using the Internet to apply, a person will save many trips to the loan office and many days. They will get personal attention by applying for a low cost home loan over the Internet. When a person turns in the forms, he or she will instigate a response that will quickly make them a homeowner! But be patient during the process because sometimes it takes a while for paperwork to get done and frequently there are 'snags' in the process therefore delaying ownership.
Proverbs tells people to seek out counsel in business dealings. "Counsel in the heart of a man is like deep water; but a man of understanding will draw it out" (Proverbs 20:5). Rather than rashly selecting one lender, check out the terms and services of several. This is good stewardship of time and money. Know what the latest terms and definition of low cost home loans so that a person can more intelligently decide which low cost home loan fits the personal situation and income. Today, home ownership is more available than ever.
High Risk Christian Home LoansHigh risk home loans, also called, bad credit loans, have a good side to them. They are good in the fact that even if the consumers credit is far less than perfect, it is still possible to obtain assistance. A high risk home loan, once obtained can be an avenue to begin to repair a bad credit rating. A bad credit history can stay on record for up to seven to ten years. This type of assistance can be very helpful in paying off debts, repairing credit, and establishing financial history.
In obtaining a high risk home loan, a consumer may have the opportunity to refinance in a few years if credit scores improve. This will help to reduce the current interest rate. In many cases, the initial interest rate can be quite steep. When the consumer applies, the lender may be leery of lending money to someone who has not demonstrated a responsible repayment history. Before shopping around, it may be beneficial to get a copy of a personal credit report. This will allow the individual to see both the positive and negative aspects of his or her credit report. One free report can be received each year by seeking this information from an online or local credit company.
A past bankruptcy or credit problems may prevent the consumer from obtaining a home loan. However, there are high risk home loan programs that will relax the requirements under special circumstances. There are also steps an individual can take in procuring high risk home loans. Checking with personal banks or credit unions can be a good first step. Asking realtors for advice may also be profitable, as they may know of lenders who may be a bit more lenient in their requirements. Researching lenders can take some time, thought and effort, but will usually pay off in the end.
Even though banks may hesitate in granting high risk home loans, they are in the business of making money. Negotiating with the bank manager may offer an extension or a further line of credit. If the consumer receives an increase in pay, obtains a new job, receives an increase in income, or has a past history of timely payments on other lines of credit, the bank may be willing to take the risk and grant this service that others may not.
Although high risk home loans are just that, a high risk, they are obtainable and can be the avenue the consumer needs to pursue to begin to repair a bad history. Beginning a search with the above mentioned steps can offer many opportunities and options for the consumer. If an individual takes the time to concentrate on getting out of debt, cleaning up his or her payment history, adding a little self discipline, and beginning to put some money aside, they may find that it is possible to have a better down payment to help lower interest rates on loans in the future. If these steps do not seem to be the best option for someone or the consumer gets stuck in a bad financial place with nowhere to turn, seeking God may be the only answer. "Wait on the LORD: be of good courage, and he shall strengthen thine heart: wait, I say, on the LORD" (Psalm 27:14).
A no cost home loan spares the home buyer extra costs such as appraisal fees, document fees, or even "points", a percentage of the loan that the borrower is often required to pay up front. These special loans are popular because they relieve buyers, especially first time buyers, from having to come up with out-of-pocket cash to get their mortgage set up. There is only one drawback. In order to save money on a no cost home loan, the homebuyer will have to pay a higher interest rate throughout the term. The wisdom of using this type of lending depends on the current cash liquidity, the affordability of the monthly rates, the value of the home, and the length of time the homeowner plans on staying in the house. Closing costs can often be daunting, especially when the borrower would rather spend that money on the new house. No cost home loans provide a fast way of getting into a house without using up savings.
This type of lending could save homebuyers as much as $5000 in closing costs. Those who are seeking a no cost home loan for a house that they don't plan on living in for the whole term may find the higher interest rate well worth considering. More and more buyers are opting for no cost home loans because they tend to move more often. A fixed rate will mean no variation in the monthly mortgage payment, even if interest rates increase. A 15-year (as opposed to a 30 year) will save almost twice as much in interest penalties over the term. However, a no cost home loan still allows borrowers to keep a cash cushion that could be used to make double payments on the mortgage principal, no matter what the term length is.
Of course, a variable rate will be assessed according to interest rates on the open market. If it changes, the Christian lender will simply pass on the lower (or higher) interest rates to their borrowers. No cost home loans with a variable interest rate fluctuate with economic tides. Although homeowners could save money (especially with teasing advertisements about low first year rates), the truth is that variable rates may end up costing more than the borrower ever planned on spending. Once homeowners have established their rate, they should keep in mind that those closing costs will be figured into the total even though it won't be paid up front. Buyers should always shop around to compare options and ask about negative points or rebates that allow a bank to afford no cost home loans. Do the math, but do not "trust in uncertain riches, but in the living God, who give thus richly all things to enjoy." (Titus 6:17)