Bad Credit? Qualify Yourself For A Zero Down Mortgage Loan

Author: Nick Graziano

I decided to write this article today after closing a home purchase loan for a couple that had some major credit issues. They got into the house with ZERO down payment, and only had to bring $600 for the closing costs. Their situation was pretty bad, I’m talking about a bankruptcy 2 years ago, thousands of dollars in outstanding collections, charge-offs and debt to income ratio of 49%. By the way, we left all of their outstanding charge-offs and collections open which means they didn’t have to pay any of them off! So many think they won't be able to qualify for a mortgage loan. Many will keep thinking they can't qualify until they read this article.

My name is Nick Graziano and I have been employed as a Loan Officer for 5 years. I have experience originating conventional mortgage loans as well as sub-prime (non-conventional) residential mortgage loans. Many of the clients that I deal with have great credit (and know it) and have no problem getting a loan but then there are those with credit problems (and they know it too). The ones with great credit are the ones that are easy to close, get the best rates and all with minimal time involved on the part of myself.

But, this article is for those with credit problems, low income and those who cannot afford a down payment. I am going to show you how to qualify for a loan with ZERO down payment, and the only out of pocket expense will be less than $1,000 ( if any at all) to cover some of the closing costs. This is just an example of one particular loan program that I use but there are numerous others out there. I picked this loan program because it allows 100% financing down to a 575 credit score

I see it on a daily basis.

Everyone wants to own a home and those with credit problems are calling every mortgage company in the phone book and applying on every mortgage website out there. (And there are many out there). Only to find out later that every time a mortgage company pulls their credit, their credit score dropped a few points, or that the particular lender doesn’t originate the type of loan that you need. That is frustrating.

Step by Step

Here is where I show you how to qualify yourself for a zero down loan.

1.The first thing you need is your tri-merge credit score. I would be more that happy to suggest a few places on the internet that you could go to get your credit score but I don’t want this article to seem like an advertisement. So, the best thing to do is to do a search on yahoo.com for terms like “free credit reports”, or “tri-merge credit report”. Just make sure that you end up pulling a “tri-merge” credit report on yourself. A tri-merged credit report pulls your credit profiles from the 3 major credit reporting companies and merges it into 1 report. The nice thing about pulling your credit yourself is that it will NOT affect your credit score. Bookmark this page while you go get a copy of your credit report and then come back to see the additional steps.

2.What is your credit score? Most mortgage lenders will use the middle of the three scores. Example: Your credit scores are 576, 525, 599. In this case you would use the 576 credit score since it is not the lowest score and it is not the highest.

3.Is your middle credit score at least 575? If so, congratulations and move on to the next step. If your middle score is less than 575 you have some homework to do. You can either sign up with a credit repair company (“search yahoo.com for credit repair”) to try and remove some derogatory items on your credit which will raise your credit score OR you can try to acquire some credit to help re-establish your credit worthiness. The easiest way to re-establish your credit is by either getting a car loan or credit card designed to help re-establish your credit. Again search yahoo.com for “credit cards to re-establish credit”

4.Do you have a bankruptcy or foreclosure in your past? Has it been 2 years since it was discharged? If yes, move on to the next step! If not, unfortunately in most cases your bankruptcy or foreclosure will need to be discharged at least 2 years or you will need to have at least 5% down payment.

5.You will need to document 24 months of recent mortgage or rental history. If you rent from a property management company we will need a Verification Of Rent completed. The form will be supplied by your mortgage lender or broker. If you rent from a private landlord, you will need 24 months cancelled checks/ or money order receipts with no payments over 30 days late. Sorry, you cannot prove your rental history if you pay your landlord cash every month, unless they are a property management company. If you are unable to document your rental history there is a way around it. Get your credit report and look for the following: Do you have an active credit line on your credit report that has been open for at least 24 months? Has this credit line had any activity in the last 6 months? If so, move to the next step.

6.Look at your credit report. Do you have a credit line that has a 12 month history reporting? If so and as long as you have no more that 2x30 day late payments then move on to the next step.

7.Look at your credit report again. Do any of your credit lines have a high limit of at least $3,000. If so, move to the next step.

8.Now take one more look at your credit report. You will need 1 more additional open credit line reporting on your credit report. (It does not matter how long it has been open or how much the credit line is for).

Well, congrats! You made it this far which means that your credit might qualify for a Zero Down Payment Loan. The loan program you qualified for is subject to change and is subject to additional conditions. This article should not be construed as an advertisement to lend. These are the steps that I go through when trying to pre-qualify a client that has credit problems. There are many more factors to determine so please discuss this with a qualified mortgage professional.

You are probably asking yourself what you are supposed to do with the information that was given to you in this article. The first thing is to contact a few mortgage companies. Ask them if they have any zero down loan programs that will go down to a 575 credit score, or whatever your credit score is. Remember, you will need at least a 575 credit score to qualify for this particular loan program. Also, in order to minimize your out of pocket expense, ask your mortgage professional if the property seller is allowed to pay 6% of the purchase price towards closing costs. If so, you will need to remember to negotiate that into your purchase contract when you make an offer on a house.

About the author:

http://www.aaamortgagerate. com

http://www.mymortga gespecialist.net

Boost Your Business with a Commercial Mortgage

Author: David Miles

Long term commercial finance, in the form of a

commercial mortgage , offers many small and medium sized enterprises (SMEs) the ability to invest in their business with new technology, new or refurbished premises, or increased stock levels.

In the past, it tended to be only larger organisations with a proven track record who could obtain commercial mortgages. A large number of younger/smaller businesses were unable to obtain this type of commercial finance and, as a result, many businesses have been forced to rely on expensive short term finance or left to use their owners' residential property as security.

Fortunately, this gap in the market is now being targeted by specialist commercial lenders who are willing to serve the commercial mortgage needs of SMEs and owner-managed businesses.

The problem

In the past, it has been difficult for small business borrowers, self-employed traders, and partnerships to raise commercial mortgage finance. This is because: Institutional lenders have focused on larger, corporate lending secured on the tenant covenant of investment properties. This sector is seen as being low risk and so has become a favourite of many traditional lenders. The lending criteria of many mainstream commercial lenders disqualify applicants who do not have three years' audited account, those without business plans, or those with a less than perfect credit history. As the UK workforce migrates more towards self-employment, greater flexibility is required from lenders to assess each case on its individual merits. Until recently, this flexibility has been hard to find. Similarly, in the past, the requirement for three years' accounts has been a barrier to new or young businesses.

The solution

To address these problems, a number of commercial mortgage lenders now offer commercial mortgages with some or all of the following features: Available to small owner managed limited companies, partnerships, and self-employed sole-traders Self-certification option - no need for three years' accounts Finance available for any purpose - no bank imposed restrictions Mortgage arrears, CCJs, IVAs, discharged bankruptcy all considered Same day indicative offers Completion in weeks, not months Transparent mortgage tracking Bank Base Rate Mortgage term of up to thirty years Advances from £50,000 up to £1.5m To find out more about how commercial finance could help you, whether you have an existing business or are just starting out, visit

Online Commercial Mortgages .

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Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published ""as is"" (unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.

About the author: David Miles edits a number of finance websites, including

TheCashClinic.com - a UK Personal Finance Portal .

Mortgage Company Stops Foreclosure And Saves Family Home

Author: Keith Hunt

“A bank is a place that will lend you money, if you can prove that you don’t need it,” Bob Hope once quipped.

But if you going through a bad financial spell, you need an institution that will stand by you.

Our office received a call early one morning from a man desperate to save his home and needed foreclosure help. He was already 90 days late on his mortgage and desperately needed to refinance and pull out money to pay off enormous debts. He had just started a new job where he actually was making less money than before, and was in a real financial bind. His poor credit made it difficult for him to even qualify for a loan, let alone a low interest rate. To make matters worse, the next day he received a notice of default on his property. This man was worried that his family would have no place to live. He was reassured that we would save his home and help him through this difficult ordeal.

We began immediately researching ways to help this client and found a lender willing to work with him and save his home just in the nick of time. His mortgage payment stayed about the same and he was able to pay off more than $25,000 in other debts, which alleviated several hundred dollars in credit card payments every month. Most importantly, this man's house was saved and his family was in a much stronger financial position.

Banks tend to make loans that are risk-free to them. It is hard to imagine that any bank would have helped in this situation. But as a nationwide mortgage banker we have ongoing relationships with lenders that specialise in different types of loans. This knowledge saved a family home from certain foreclosure.

http://www.goldmedalmortgage5.com/Stop_Foreclosure.htm is a nationwide home mortgage loan company, powered by Infiniti Mortgage Capital.

For immediate assistance to stop foreclosure please call toll free 1 888 483 2500

About the author: Camelot Marketing provides services to small to mid-range companies.