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Back before the housing collapse of 2007 and 2008, getting a home loan was a lot easier to get a very bad credit mortgage as Lenders were flexible when it came to credit score and income verification. They were more interested in taking advantage of a burgeoning market in real estate values than they were in performing the due diligence on the loans they approved. While the vast majority of the loans they approved turned out all right, far too many of them ended up going bad. People ended up receiving approval for loans that they would never be able to pay off, and once the defaults started hitting, banks began to suffer financially. The damage was more severe down south in the U.S., but the risks were severe enough in the Canadian market as well for the federal government to institute regulations to keep that sort of chaos from ensuing.
For the banks, the credit score is now one of their easiest metrics for determining whether to extend a home loan or not. In some cases, turning down an applicant is the right choice. Before you purchase a house, you need to put together enough of a down payment so that you can afford the monthly payments. If you’re still making the minimum payments on large credit card balances and are teetering on the edge when it comes to keeping your car away from the repo man, you should probably get your financial house in order. Bring your other debts current, and save up enough of a down payment so that you can put 20 percent down.
A lot of people have already improved their financial situation, but their credit scores aren’t showing it, and so they’re still stuck in the cycle of endless renting. The banks are still telling them that they can’t get a mortgage. Is this you? Maybe you had a cancer diagnosis three years ago and had to take a year off work to recover. You had short-term and then long-term disability, but the medical bills on top of what your insurance covered. You fell behind on your car payments, almost got it repossessed, and maxed out five different credit cards. You went back to work, got your bills in order, but your credit score isn’t ticking upward as quickly as you had hoped.
Very Bad Credit Mortgage Loans
Maybe you had a lucrative mid-management position, but when your company merged with a rival, your position became redundant, and you lost your job. You had six months of savings in the bank, but it took you almost two years to find another job. You burned through those savings, got behind on your mortgage to the point where the bank had to approve a short sale, and you were days away from having your car repossessed on a number of occasions. You found another job, have bolstered your savings again, and you’re ready to buy a house, but your credit score is still telling the story of yesterday rather than today.
Very Bad Credit Home Mortgages
If either of these two scenarios applies to you, or if you have found a way to resurrect your financial fortunes but are still waiting for the credit bureaus to acknowledge your hard work, then Amansad Financial stands ready to help you. We have relationships with a number of different lenders who focus on the value of the property itself rather than the credit profile of the borrower. These private lenders want to make an investment in the mortgage market but don’t want the low interest rates that the traditional banks and lenders make. They’re willing to accept the higher risk Very Bad Credit Home Mortgages when it’s attached to people who have made the effort to make their financial pictures rosier. The terms of these loans are short, giving borrowers the time to improve their credit profiles so that when the term of the private loan comes to an end. Then, they can apply for a traditional loan — at a primo rate — with a bank.
Very Bad Credit Mortgage Lenders
Call one of our low credit mortgage lending specialists at Amansad Financial today if you are interested in partnering with one of our private lenders to get out of the cycle of endless renting. We have worked with many clients in western Canada with very low credit mortgage situations, helping them find private lending sources and work their way toward qualifying for bank lending at renewal, and we look forward to working with you as well.