Poor Credit

Don't think that bad credit means you can't purchase a home or refinance your existing mortgage. Credit problems can happen to anyone. Credit card bills get out of hand, a payment is missed, or a co-borrower reneges on their financial obligations. Unlike most other mortgage companies who offer home loans for people with less than perfect credit, we have a personal interest in your success. We specialize in helping people with less-than-perfect credit!
Regardless of your credit situation we offer:

• Excellent customer service
• Flexible guidelines
• A wide array of loan options
• Convenient online applications
• Quick closings
• No application fee
• No credit Report Fee
• No appraisal fee
• And always, NO up-front costs to you of any kind

Have you been continually turned away from banks and lenders because you have made previous credit mistakes?  We can help. Regardless of your past credit history, or lack of credit history, whether you own a home or looking to own, needing a home equity loan, or refinance their existing home we can help.  Don't worry if you haven't had the best luck in keeping your credit clean.  We understand that things happen.  We will still get you the loan you want with the best available rates. If you have less-than-perfect credit, Discount Mortgage Lenders has loan programs that can help you become a homeowner or save money by refinancing.

Fast and easy to pre-qualify!

Many borrowers with less than perfect credit can take advantage of refinancing into a short-term loan to improve their credit. They do this by consolidating many different debts into one loan with a much lower, tax-deductible interest rate that yields a far lower monthly payment.

Countless borrowers refinance an existing adjustable rate to a fixed rate loan even if they have had credit problems. An adjustable rate mortgage is a great way to get into a home with low monthly payments. But the periodic rate adjustments and possibility of rate hikes can be disconcerting, that is why you might want to consider switching to the security of a fixed rate loan. Here again, you have different options for every situation.

For other borrowers the may want to move to an ARM for short-term savings.

Some people might wonder why you would want to go from a fixed rate loan to an ARM. But it can be a smart move if you want to save money on your home loan payments for a year or so before moving to another home. By switching from a fixed rate loan to an ARM, you can save substantially in the short term

Regardless of your reason for refinancing or your past credit problems we give special attention to bad credit home loans and past bad credit problems with minimum 500 fico scores. You can discuss your bad credit history with our loan officers who specialize in bad credit home loans with complete confidence and security. We provide higher loan to values for bad credit mortgage refinance loans than most lenders will. If you have major credit problems we can still customize a bad credit home loan. If you have bankruptcy, repossessions, charge off's and mortgages late payments we can help.

Don't Be Discouraged

We will work on the best terms and best rate to assist your situation.

If you have bad credit, you may not qualify for what is referred to as a conventional loan. In this case, you could consider a subprime loan. Like other loans, subprime loans come in many forms based on the terms, loan amount and loan to value ratio you are looking for. It might surprise you to learn that there's an entire industry based on lending to people who have bad credit. The guidelines for FHA and VA loans care more about your ability to repay the loan, as opposed to your past credit history. One last thought. Many homeowners overlook the possibility that their credit isn't as bad as they'd thought.

Once you get a mortgage loan even with less than perfect credit and have a new mortgage with one low payment and paying it in a timely manner each month, many borrowers can increase their credit scores dramatically. Some borrowers see scores increase by as much as 100-200 points and their lives are easier by making only one payment each month. A debt consolidation loan can put you on the path to becoming an "A-paper", excellent credit borrower where you will qualify for loans with lowest rates and the most cash out.

Home mortgage loans for people with bad credit include a wide assortment of options, including:

• First Time Home Buyer
• Jumbo Mortgage Loans
• No Income Verification Loans
• No Income No Asset Verification
• Stated Income Stated Asset
• No Income, No Asset, No Employment
• FHA Home Loans
• VA Mortgage Loans
• Non Owner Occupied / Investment Property
• 40-Year Home Mortgage Loan
• Purchase loans with 5%, 3% and 0% down
• 30 yr and 15 yr fixed loans, 1, 3, 5 & 7-year ARM loans, adjustable with low rates
• Home Improvement
• 2nd mortgage
• 80/20, 80/10 and 80/15 Combo Loans
• Interest Only Loans

Your credit report may be filled with credit blemishes, a bankruptcy, charge offs, collection accounts, tax liens and more. We use a series of categories to assess the risk of each borrower based on their credit report. If you are not familiar with your credit score or how your credit history affects getting a mortgage loan please read on.

Your ability to use credit responsibly and repay creditors on time has a lot to do with how much access to credit you will have in the future.  Building a solid credit history gives you more buying power when you need it, and that can be especially valuable when you are buying a home. If you have good credit, you may have a much wider range of mortgage offers with lower rates.

Before lending you money, creditors - including mortgage lenders - use your credit report to find out how you've used credit in the past.  To understand how a lender may judge your credit history, you need to be familiar with your credit report and the score associated with it.

Put simply, credit is the reputation for repaying debts on time. The better your credit, the more willing companies and people will be to lend you money, issue you a credit card, rent a house or apartment to you, hire you, or provide services to you on favorable terms.

Everything else being equal, someone who has consistently made payments on time is a lower credit risk than someone who has not.  Because lenders usually offset risk with higher financing charges, having a better credit history generally means getting more favorable loan terms.  And because some loan options are riskier than others, good credit may give you more flexibility in structuring your mortgage.

Your credit report is a record of all your credit transactions whenever and wherever you've used credit to purchase goods and services. Your credit will have a big influence on whether or not you can get a mortgage, the terms of that loan, and the interest rate.

Your credit report is compiled by three private companies: Equifax, Experian, and TransUnion. These companies sell your credit report to banks and other creditors so they can review your past credit history.

Credit scoring is a statistical method that lending institutions use to quickly and objectively assess the credit risk of a loan applicant. The score is a number that rates the likelihood you will pay back a debt. Scores range from 350 (high risk) to 950 (low risk).

Credit scores only consider the information contained in your credit profile. They do not consider your income, savings, down payment amount or demographic factors like gender, race, nationality or marital status. Past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score. Different portions of your credit file are given different weights. They are:

• 35% - Payment history.  Whether you've made payments on time in the past is used to predict how likely you are to pay in the future)
• 30% - Outstanding balances.  Being over-extended on your credit accounts tends to lower your score. (current balance compared to high credit)
• 15% - Length of your credit history having a longer history gives lenders a more reliable picture of your credit.
• 15% - Types of credit in use.  Having a diverse mix of account types usually has a positive affect on your score. (installment loans, revolving and debit accounts)
• 5% - New credit.  A series of requests for new credit may suggest to lenders that you are looking to take on new debt (number of inquiries)

Your credit report must contain at least one account, which has been open for six months or greater, and at least one account that has been updated in the past six months for you to get a credit score. This ensures that there is enough information in your report to generate an accurate score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.

What goes on your credit report

Although each credit reporting agency may report information differently, all credit reports contain the following:

• Identifying information.  This includes your name, address, date of birth, and social security number.
• Credit accounts. Your report lists information on each of your accounts, including the account type, date it was opened, credit limit, balance, and payment history.
• Inquiries.  When a lender requests your credit report, either to process an application you submitted or to qualify you for pre-approved offers, the inquiry is recorded.  When you request your own report, however, the inquiry is not listed.    
• Public records.  These include information on bankruptcies, foreclosures, and any other liens.

Under the FACT Act amendments to the Fair Credit Reporting Act you are entitled to one free credit file disclosure in a 12-month period. To request this free annual disclosure you may contact the Central Source on-line at www.annualcreditreport.com. You can also contact the Central Source to request this free annual disclosure by calling toll free (877) FACTACT or by using the mail request form available at the central source website by clicking the following link www.annualcreditreport.com.

AnnualCreditReport.com is a centralized service for consumers to request annual credit reports. It was created by the three nationwide consumer credit reporting companies, Equifax, Experian and TransUnion.

AnnualCreditReport.com processes requests for free credit file disclosures (commonly called credit reports). Under the Fair and Accurate Credit Transactions Act (FACT Act) consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies. AnnualCreditReport.com provides consumers with the secure means to do so.

Credit Reporting Agencies

Equifax
Email: EISC@Equifax.com
Attn: Dispute Verification Process
PO Box 105873
Atlanta, GA 30348
Automated System to receive credit report (800) 685-1111
Fax: 770-375-2773
CSC (Equifax's parent company) 800-759-5979

  

Experian
Attn: Profile MNTC Dept
PO Box 2104
Allen, TX  75013-2104
- or -
PO Box 9558
Allen, TX 75013
(888) 397-3742

Fax: 972-390-3838
Risk Score Hotline (to explain scores) (800) 777-2066

   

Trans-Union
PO Box 1000
Chester, PA  19022
(800) 888-4213

To speak to a customer service representative - (800) 916-8800
Do not choose any option, stay on hold.

The following are five things you can do to boost your creditworthiness.

5 steps to better credit

Correct blatant mistakes.  Your credit score is only as good as what shows up in your credit report.  Review your reports from all three credit bureaus for accuracy once a year as well as several months before applying for a loan.  Changing a mistake on your report - such as a payment that is wrongly labeled as late -- can take 30 days to three months, sometimes longer.

Pay your bills on time.  This is always a good practice, and it's especially critical that you make prompt payments close to the time you need a loan.  That's because a late or missed payment in the last few months is likely to lower your score much more than an isolated late payment five years ago.

Reduce your credit card balances.  A heavily weighted factor in your FICO score is how much money you owe on your credit cards relative to your total credit limit.  Generally, it's good to keep your balances at or below 25 percent of your credit card limit.

Pay off debt rather than moving it around.  Since the ratio of your credit card balance to your credit limit is key, closing out an account and transferring the balance simply means you increase that ratio, which is likely to lower your score. In other words, say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit.  Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25 percent. If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50 percent of that limit.

Don't close unused credit card accounts near loan time.  If you have several credit card accounts but are only using a few of them, you'll only raise your balance-to-limit ratio if you close the unused ones.  You also shouldn't open new accounts when applying for a loan if possible.  If you have a short credit history or very few accounts, opening a new credit line may lower your score since you don't have a proven track record, said an executive at TransUnion.  What's more, a new account will lower the average age of your accounts, another factor in your FICO score.

Applying for a mortgage with bad or poor credit is simple.

Take a few minutes to complete our online application. We'll process your information and notify you immediately of the status. You'll soon be on your way to a more peaceful - and more financially secure - life! Don't hesitate... apply now!

A bad credit loan isn't always a bad thing. It's often the start of a whole lot of "good"-a good home, a good credit score, and a good life.