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Do I need perfect credit to get a mortgage?

Do I need perfect credit to get a mortgage? - No. Imagine if perfect credit was required. Few loans would be made and every lender in town would be bankrupt. You do not need perfect credit. However if you want the "perfect" loan then perfect credit definitely helps. Discuss your needs with a broker you trust.

You can obtain a mortgage loan with almost any type of credit. However, the worse the credit the more you will be required to put down as a down payment for a purchase transaction and the higher the interest rate you are more likely to pay. Sometimes compensating factors such as a lot of documented liquid assets, great job time, and a very low DTI (Debt to Income Ratio ) may help to slightly compensate for a lower credit score.

Perfect credit is not needed to get a mortgage because most lenders do not judge borrowers on credit alone. Although, credit is a big factor when applying for a mortgage each lender has different criteria to be approved for a mortgage. Lenders also take into account a borrower's mortgage/rental history, employment history, and other factors. There are many lenders that target borrowers with less than perfect credit which is called sub-prime lending.

Sub-Prime lenders specialize in people with less than perfect credit. With the loan programs available in todays market most people can purchase a home.

There are many different types of mortgages that you will be able to get without perfect credit. Some programs use the credit score only, only the mortgage history, and some will even disregard collections and judgments allowing them to exist without having to pay them off.

If you are thinking about buying a home but you are not quite sure if you can qualify then it might make sense for you to contact a mortgage broker. A good mortgage professional will not only look at your credit but will also look at your complete financial picture to see what makes sense for your current situation. They will also make recommendations on what programs will be available for your situation. If you are unable to obtain a mortage now a mortgage prefessional will help guide you through what needs to be accomplished so you can qualify real soon.

There are some lenders that do not even look at FICO scores. This is because sometimes people have not established any credit , but yet will still make rental payments and utility payments on time. These various payment histories will appear on an individuals credit report.

There is no such thing as 'perfect credit' . All consumers who have a credit rating fall into either 'conforming' or 'subprime' financing category. There are even programs for first time borrowers who have no credit history.

However, some consumers who have had difficulty meeting their commitments may have credit so damaged that they could be asked to raise their credit score to qualify .

If you have poor credit ou should strive to improve your credit rating after securing a mortgage. This will allow you to refinance at a conforming rate and save you money every month.

When banks underwrite a mortgage application, there are four major factors they consider. Credit history is only one of four. Lenders also examine the loan applicant's ability to repay the loan, the homeowner's asset reserves, and the loan amount in relation to the property value, in other words, how much is the homeowner putting up in the property. With one or more of the other three factors being above average, even a homebuyer with below average credit profile can easily obtain a mortgage.

Even if you have filed for bankruptcy or are currently in foreclosure, contact us about refinancing your property. You do not need perfect credit, even bad credit is OK with us because we have thousands of loan programs for borrowers of all credit types.

Many mortgage loans programs are available to borrowers with less than perfect credit. One thing to consider when obtaining a loan with less than perfect credit: The borrower can usually get a better interest rate by getting a 2 or 3 year fixed product rather than the traditional 30 year fixed. This makes good sense because once the credit is repaired 2 or 3 years down the road the borrower will most likely want to refinance into a lower interest "A" paper type loan.

Some other factors that lenders will look at is the borrower's payment history on an existing mortgage as well as rental history. The better the payment history, meaning no late payments greater than 30 days, you will qualify for a lower interest rate and higher loan amount.

Refinancing with Less Than Perfect Credit - Many homeowners mistakenly believe that they cannot qualify for a refinance or benefit from one because they have a less than perfect credit history. The fact is I have hundreds of loan programs available for borrowers who have had credit difficulties. A mortgage professional such as myself can analyze your individual situation and advise you if changes in your mortgage situation would benefit you.

Working with a broker means that you can often get approved for loans that you might not be able to otherwise. Most brokers work with as many as several hundred lenders, and have access to the loan programs from all of those lenders. This means that they can probably approve you for a loan, even with less than perfect credit.

Sometimes, all it takes is a little creative thinking for a loan to work. A good broker knows that not all people fit into a cookie cutter mold and that sometimes, you have to think outside of the box.

Most local banks will not deal with consumers with below average credit. This is one of many reasons that working with a mortgage broker can help you. Mortgage brokers have programs for below with excellent credit, less than perfect credit and downright bad credit. Not only do they have loans for all different credit types but they also have loans for all different income types. They can mix and match these types of loans together too. An example is if you were a self-employed individual and it was hard to document your income and your credit was below average, a mortgage broker may find the loan that suits you best is a sub-prime loan that will allow you to use bank statements as income documentation instead of W2's, tax returns and pay-stubs. Therefore, there are many choices available to consumers with less than perfect credit.

If you have paid your mortgage on time for a minimum of 1 year, you may qualify for an FHA refinance loan. An FHA loan is a government insured loan. There are loan limits for FHA loans so be sure to consult with your mortgage professional at 415-617-5448 or e-mail[email protected] to see if you are eligible for FHA financing.

Believe it or not, there are even programs available for people who have recently had a bankruptcy!

Use your new mortgage to build a better credit score! It's not easy, but making every mortgage payments on time for 24-36 months can help build higher credit scores. For this reason, many people will initially take a 2-year ARM or 3-year ARM, build a string payment history (and higher scores), then refinance into a lower, fixed rate mortgage. Managing credit properly requires persistence but allows you to save thousands of dollars in the long run.

Does your credit report contain errors? If so it could result in you over-paying on your next mortgage. Correcting mistaken accounts can take time so the process should be started as soon as you recognize the mistakes. Common mistakes are duplicate accounts, old accounts that have not been updated, or accounts that are marked "open" when in fact they have been paid and closed.

Purchasing a home with less than perfect credit - It is possible to buy a home with credit that is not perfect. It is even possible to buy a home with flawed credit or below average credit and put little to no money down. Millions of homeowners have bought homes while having credit that is somewhat flawed or below average. Consult a mortgage broker to find out how much of a home you qualify for, how much of a down payment may be needed and what types of home loan programs are available with your exact credit scores.

Many people believe their credit score will be worse than it actually is. Others believe they have good credit, but their credit score is actually low. So, the first step is to have your mortgage professional run a credit report on you and review it with you. Then he can gather some information from you and present you with some financing options based on your specific situation.

Obtaining a new mortgage is a great opportunity to build a strong credit history and higher credit scores. After 2 or 3 years of on time payments marginal credit scores can really see an increase. To take full advantage of this opportunity you must make every payment on time and try not to acquire any new debt.

There are plenty of lenders around the country that finance homes to people that have less than perfect credit. Talking with a mortgage broker allows you have access to many different loan programs. They will be able to find the lender that will fit your credit and preferences.

Have you reviewed you credit report for errors? Credit reports often times contain incorrect derogatory information that may be negatively affecting your credit score. Ask your mortgage broker or loan officer to review your credit report with you and be sure to point out any incorrect data. The process of correcting credit report errors can be tedious, but the results can save you hundreds of dollars every month.

Lenders offer many different forms of alternative financing for borrowers who have less than perfect credit. You should never sell yourself short and think that your credit is too bad. Get in contact with your local mortgage broker about the different options of financing that are available. You will be surprised in what financing options are available today.

Home buyers with less than perfect credit history should expect to pay higher interests than others. Although many banks are more than willing to grant loans to homebuyers with bad credits, they charge higher interest rates to justify the higher risks with non-prime mortgages.


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Milwaukee Mortgage Lender
Wisconsion Mortgage Refinance
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Loan Officer | What Counts As Income | Hard Money | Where should I go to obtain a mortgage | Interest Only Mortgage | Why Would I Want a Stated Income Loan | 100 Financing - Investment Poperties | Buying my first home | Should I refinance | Home Equity Loan for Condominiums | Option ARM Mortgage | ARM Refinancing | Employment History | Your FICO score and loan-to-value | Pennsylvania Areas of Service | Tips for keeping your heating bill down | Frequently Asked Questions - Credit | Lease-to-own purchase | 50 Year mortgage loans
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