The term 'subprime loan' is one that gets a lot of grief in the media and in the minds of those shopping for homes and mortgages for people with a poor credit history today. That's because these types of mortgages were the main cause of the housing market collapse in the early 2000s. However, it's important to understand that for some people, subprime lenders have reappeared in recent years extending good options that are worth considering for new home buyers with poor credit or a unique situation that falls outside of the scope of traditional conforming mortgage programs. Millennial home buyers are beginning to embrace unique opportunities from non-traditional lending sources and this has helped stimulate home sales across the country.
First, it's worth understanding the basics of subprime loans.
First time home buyers are indeed eligible for subprime loans in many cases. The key is understanding that your credit score and history aren't the only factors in a loan – other things can as well like your debt to income ratio. However, even those with trouble documenting income due to being a subcontractor or having shifting, seasonal pay can apply for these types of bad credit house loans. There are a handful of subprime mortgage lenders that specialize in unique financing options for a multitude of reasons.
You can get a subprime loan today that is backed by the U.S. government even if your credit score is below average. We continue to hear rumblings from subprime lenders and brokers that easier credit rules will open the door for thousands of first time home buyers in 2017 and 2018. We believe this will help the Millennials who had been apprehensive to buy a home in previous years:
Simply put, subprime house loans are readily available for first time home buyers who need them. There are still various requirements in order to receive them, but if you'll take some time you should be able to find the right subprime loan program for your first time home buyer needs. Pay attention to interest rates, terms, and other basic factors and you will be able to move into home ownership and move your financial future forwards in a big way. Top 8 Reasons Home Buyers Get Turned Down for a Mortgage Loan.
Having the ability to uncover new options to borrow money from subprime mortgage lenders online makes buying a home more realistic than ever before. However, you need to do your homework when shopping lenders, brokers and credit unions that you are considering, so you lock into a mortgage that fits in nicely with your housing budget. If you do that, you will be able to start receiving the benefits of homeownership.
First Time Home Financing.com does not offer subprime home loans. FirstTimeHomeFinancing.com is a website that offers information about house financing and does not guarantee home loan programs for first time buyers directly or indirectly through representatives or agents. FirstTimeHomeFinancing.com provides a news and information service by offering editorial content related to the housing and real estate finance industry.
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