BAD CREDIT HOME LOANS NOFICO SCORE
Alliance Mortgage has few home loan and refinancing programs that do not require FICO Scores. We have some limited programs where FICO scores are not the main criteria. The maximum loan to value is 65% on these loans. The main criteria for these loans is the collateral and the current value of the property. These are special loans that are available on a case by case basis. These loans range 1-5 years fully amortized, and provided by non institutional investors.
Basically nofico score home loans are provided by private companies and individuals who loan money rather than conventional banks and big lenders. These loans requires a basic loan application and few disclosures. The processing time is one to two weeks and requires and appraisal. The appraisal of the property is the main focus of the loan. If value of the property comes in the private lender is willing to loan money.
The terms on these loans are 15 years or 30 years amortized due in 15 year. There could be additional terms custom tailored to the borrowers needs and credit situation. The interest rates on these loans is higher than conventional lenders and fees and costs also higher. Expect to pay from 2 to 5 points on the loans which is normal. These lenders are taking a lot more risk and managing their own portfolios which are held with them. If there is a default the lender is probably going foreclose and end up with the property.
The convenience to the borrowers is that the you get a loan without the paper work and deliberate process that stems with conventional lending. A loan application , few disclosures and an appraisal ordered by the lender is usually all it takes. No fico score loans are not new and have been around for many years as alternative to conventional lending.
If following conditions apply to you, you should be considering a non fico based bad credit home loan or bad credit mortgage refinance.
- Notice of Default or Foreclosures proceedings
- Foreign Nationals with no credit history or US earnings
- Recent Bankruptcy no established credit
- Recurring 120-day lates or multiple 90 day lates on credit report
- Unseasoned homes loans, inheritance, etc.