Bad Credit, No Mortgage

I have been getting a lot of calls recently from potential borrowers that either want to refinance or purchase a home that have horrible credit. If they would buying all cash, they would still need a co signer. I must say it has been more than usual and it inspired me to write about it. I have seen bad credit reports before and it is not a surprise, but what is a surprise is that with all of the government iinvolvement in the housing market, people think that there is some program out there for someone who does not pay their bills. I've heard "isn't there a program for me now that Obama is in charge," and "Obama doesn't have anything for me?" The answer is "NO."

A bank or Obama does not have any programs for people that have three times as many collections and charge offs than open accounts in good standing. If you can not pay a Verizon cell phone bill or you car, why would anyone think that you would pay a mortgage on time for 30 years?

Now of course there are situations, where FHA may allow your score to be low but only if there is a situation that was totally out of your control. For example, your husband died and you had to get a job and now you have a job and are paying your bills on time and you qualify based on your income.

Please understand the effects of your credit score and what affects the score. It is now more important than ever to have your credit score ready when you need it. If you are thinking, "I do not plan on buying anything big soon, so it does not matter," you are now in the best position to help your score, because you have time. And as you will see from my report, time is a factor in figuring your credit score.

If you or anyone you know is in need of mortgage financing or has questions about their credit and credit score, call me direct at 908 868 0685 or email me at erodriguez@arkmortgage.com.