Colorado Bad Credit Mortgage Information
With the recent wave of foreclosures sweeping across the country, more and more people are finding themselves in a situation where they have “bad credit”.
Lending standards are different than they were even 2 years ago and it is now very difficult to get a mortgage here in Colorado until you “fix” your credit. Fixing your credit typically involves working with a credit repair firm to clear up any inaccurate or untrue information on your credit report and can result in a significant increase in your credit scores.
Colorado Loan Options For Bad Credit
Many times people with less than perfect credit are left with only a small handful of loan options — FHA or VA loans. Recently, many lenders now require that the minimum credit score for anyone who wants to get an FHA or VA loan is a 620.
A 620 credit score is not a great credit score – but many people will need to work to get to that 620 score before they can qualify for a FHA or VA loan.
What If You Don’t Qualify For an FHA or VA Loan?
If the FHA or VA loan programs don’t fit what criteria that you are looking for, there are still other options such as seller financing, private financing or even loans traditionally known as “hard money” loans. Typically hard money loans will be used when you can put a significant amount of money down on a property to meet the loan-to-value requirements of the hard money lender.
What is the current “magic number” for your credit score. Well, while it isn’t exactly “magic”, we do see that most programs (not all!) are requiring at least a 620 mid score in order to have a chance at an approval for a loan.
Call now to speak with a loan officer and see what options are available for your unique situation.
