Posted by Ralph VA on April 20, 1999 at 17:59:10:
Let me know if he cant help you in NJ. I’m pretty sure I can. I’m a loan officer in VA and have access to 100s of lenders nationwide.
Ralph C. in VA
Mortgage rate for people with bad credit - Posted by Chris
Posted by Chris on April 20, 1999 at 14:46:06:
I have seen alot of ads recently that say people with bad credit can qualify for a mortgage. I am curious to know what kind of interest rate can a person with bad credit and a BK expect to get on a 30 year fixed rate mortage?
Re: Mortgage rate for people with bad credit - Posted by James-IN
Posted by James-IN on April 20, 1999 at 16:26:31:
Chris,
It really depends when the derogatory credit happened in relation to the BK and how much time has past since the BK discharge.
If the derogatory credit happened after the BK then that’s not good. The lender will look at that borrower as a high credit risk and will set a high interest rate accordingly (if they even do the loan at all). The rate will be some were in the range of 11-18+%. Afterall, the borrower was given a chance to start over and went right back to having credit problems.
If the derogatory credit happened before and lead to a BK filing, the borrower may qualify for a lower rate. This is especially true if the borrower has re-establish credit since the BK and has shown that they can handle their credit obligations. In fact, in some cases, if the borrower has a high credit score (around 640+) and the BK is discharge (as soon as 1 day), they could qualify for 100% financing (i.e., First Franklin).
Finally, the amount of time since the BK and the re-establishment of credit in good standing is a big factor to getting pre-approved and getting that lower rate. If it has been 2+ years from the BK discharge, the borrower could go conforming and definitely go non-conforming. That means getting rates in the 7-8% range for conforming and 8-11% for non-conforming.
Just some general info, hope it helps in answering your question.
James-IN
Re: Mortgage rate for people with bad credit - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on April 20, 1999 at 15:03:22:
Chris,
My mortgage broker tells me that he can find 100% financing for folks with some credit blemishes at 9.75% to 10.00%. This rate does NOT require mortgage insurance either.
The borrower must demonstrate a desire to handle new credit responsibly since the blemishes, but there are packages available for folks who are getting their lives back together.
I hope this helps.
Bill K. (AZ)
Re: Mortgage rate for people with bad credit - Posted by Chris
Posted by Chris on April 20, 1999 at 18:37:14:
If one was to get a loan in the 9-11% range, how long would it be before you could re-finance for a lower rate?
Good Referral!! - Posted by Sean
Posted by Sean on April 21, 1999 at 12:48:24:
Hey, I gave your broker a call and he was pretty cool. Ran my credit, and he says I’m borderline (which is weird, I have 645 FICO he told me… is that borderline??). Thanks for the info, we all appreciate.
Re: Mortgage rate for people with bad credit - Posted by David M. Petrovich
Posted by David M. Petrovich on April 20, 1999 at 16:20:53:
The fate of hundreds, if not thousands of financially distressed homeowners rests in your response to this question: What is your mortgage broker’s name and telephone number? I’d certainly look forward to speaking with him.
Contact David M. Petrovich, Director
Society For The Preservation of
Continued Homeownership, A NJ Nonprofit
501(c)(3) Corporation
@ 732-571-9464
Re: Mortgage rate for people with bad credit - Posted by James-IN
Posted by James-IN on April 20, 1999 at 22:40:10:
Chris,
With some lenders you can refinance right away, but most want to see 12 months seasoning. Also, the loan you get may have a prepayment penalty.
James-IN
Uh-Oh! - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on April 20, 1999 at 16:27:11:
David,
Cool! I have the fate of hundreds, if not thousands, of financially distressed homeowner’s in my hands? I hope I can stand the pressure. 
His name is Ryan Ingram. You can reach him at (480) 926-1118. We are in Arizona, if that matters.
Let me know what you discover.
Sincerely,
Bill K. (AZ)
Re: Uh-Oh! - Posted by NJDAVE
Posted by NJDAVE on April 20, 1999 at 16:44:03:
I called your broker who disclosed some of the criteria required to make such loans. He operates in three or four states (Arizona, Texas, …) which doesn’t help me, but he’ll see if he can operate in New Jersey.
Hey Bill K, thanks for the tip!