Subprime Mortgage Lenders

Helen Said:

Why * were * Mortgage Lenders WILLING to lend to SUBPRIME borrowers ??

We Answered:

Because they made a HUGE profit off it. Its all about the allmighty dollar. Credit card companies dont care if they are charging an old lady 30% interest b/c she was one day late on her payment, whats the difference. All of a sudden, the mortgage lenders are supposed to "care" about the consumer, but no other corporations do. Doesnt make sense. People want to blame others, not take the heat for the fact that they really couldnt afford the 500,000 dollar home with a 50,000 income in the first place. People WANT things, dont care how. But, then, blame everyone else when the crap hits the fan. Thats what is wrong with the world today.

Lance Said:

Are there still subprime mortgage lenders out there and how do I find one?

We Answered:

There really are MUCH fewer subprime mortgage loans available than previously. However, a few companies that are known for doing subprime loans are: Wells Fargo Financial, Citi Financial, Beneficial/HFC, and a few others. Best bet is to repair the credit first, then get your loan later.

Virgil Said:

If you were the CFO of a mortgage lender, should you have seen that subprime mortgages would create collection

We Answered:

Yes, and they should not have been approving subprime loans to subprime buyers!
All mortgage brokers responsible for this disaster should be fired and banned from any profession dealing with finances.
Future brokers should be required to be licensed.
Outrageous brokers had the nerve to actually state "if they have a pulse, we can find em a loan"

Ben Said:

Is It sill possible to receieve a subprime mortgage loan, after the subprime meltdown?

We Answered:

There are still subprime programs out there. 100% financing is going to be tough to come by though with less than a 620 credit score. 6 weeks ago, you could still get 100% with a 580.

If you pay all your bills and have been steadily employed, then I would suggest looking into an FHA loan. Many so-called brokers are so quick to throw someone into sub-prime because it is easy or they are not aware of the FHA Guidelines. Here are some guidelines for you to know about.

1) No Credit Score. Most lenders will cap this out. We cap it out at 500. If no credit, then alternative credit is allowed (ie 12 months of telephone bills, car insurance, cell phone etc)

2) Derogatory credit (collections, charge-offs etc) "do not necessarily have to be paid at closing."

3) 3% down payment required. Okay, not good if you need 100%. No way ... did you know FHA allows grants from non-profit organizations to cover this? Check into the Buyers Fund, formally the Neighborhood Gold Program. I use them a lot for my FHA clients.

This is the way to go first. If you cannot get approved, then you should have your lender put you through FNMA My Community or FNMA Flex 100 (both 100% financing).

All conventional financing should be exhausted before you are placed in sub-prime. Even if you can get a level II or III approval with the Flex 100, it is still better than subprime.

Visit my blog http://mortgagecounselor.blogspot.com for more info on this type of thing or send me an email.

Best of luck

Carla Said:

Where can I find a subprime lender in North Carolina?

We Answered:

Hi there. I can help.

www.HomeLendingMadeEasy.com

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