Bad Colorado credit home loan
Bad Colorado credit home loan programs have been available in our market for as long as I can remember. Lenders became even more aggressive 3 and 4 years ago, finally letting up about a year ago. These Bad colorado credit home loan programs did serve a purpose, but only if the mortgage broker knew what the impacts of a Bad Colorado credit home loan. These loans were what I referred to as a temporary relief program designed to get out of in 2 or 3 years depending on how long the short fixed rate period lasted. Bad Colorado credit home loan programs are often referred to as Subprime loans. These Bad Colorado credit home loan programs have an adjustment period 2 or 3 years after the loan orginated. Once the fixed period expired these Bad Colorado credit home loan programs will adjust 2% every 6 months until they hit the market cap rate which is around 10%. These loans were good to get high risk buyers into a home who previously could not qualify for a loan however credit counseling would be manditory to avoid the risk of future foreclosure situations. This is where we in the mortgage profession failed. I made it a point to follow up with these clients at least 10 -12 times a year and when the counseling is effective clients only needed to have a clean credit history for one year to qualify for a FHA loan. FHA loans are fixed for 30 years and have a rate around 5.5% today, much better then the Bad Colorado credit home loan rate around 6.5% even during the best of times. Another obsticle in refinancing today comes in the value of the home, but FHA requires only 5% equity and provides a perfect solution to Bad Colorado credit home loan programs offered in the past. Congress also passed a program that will even help people currently situated in a Bad Colorado credit home loan program with current mortgage lates or if you are currently behind on your mortgage. There is a condition the lates on the mortgage must have appeared after the adjustment period. It is designed for Bad Colorado credit home loan programs that have adjusted out of control. Long story short talk to someone who knows the industry, who understands the programs and a person who can offer you a solution. I won’t say that these Bad Colorado credit home loan programs are bad, the served a purpose and allowed more people to enter home ownership then ever before, but with this came a responsibility that those that need a program like this needed to focus on their credit during the fixed rate period, if not your bad Colorado credit home loan became more of a liability then and asset. Please take time to visit my other two websites www.coloradohomemortgageloan.net which holds my 2nd blog site, and www.nostresshomeloans.com which has all the primary information to include my bio. Have a great day:-) I hope the weather gets better soon summer is my favorite time of the year:-)
Daniel
