What type of mortgage is best for poor credit?
Answers:
Having poor credit is always going to give you higher rates than if you had good credit.
Now, having said that, your choices in mortgage come down to trading off rate with some other things:
An ARM will always be a lower rate / lower initial payment than a fixed mortgage. But, the rate can vary after 3, 5 or 7 years depending on the type of ARM, which means that after 3, 5 or 7 years, your payment could go up substantially, whereas with a fixed rate mortage your payment will initially be higher but will not increase.
A 15-year mortgage will get you a lower interest rate than a 30-year mortgage. But, since you are amortizing over 15 years vs. 30 years, your monthly payments will be higher.
So, your lowest INITIAL monthly payments will be a 30-year ARM, but it will entail the risks and trade-offs above.
Having poor credit will affect the loan you get. I would suggest you get with these people to see how bad your credit is and how they can help you to increase it before buying a home.
The money you save on the mortgage would probably be much more than you would ever pay these people.
And I strongly recommend these people and not other credit repair places because they are attorneys.
Any type you can get and still afford; I recommend Smart Choice Mortgage. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a Smart Choice loan officer will contact you within 24 hours. Good luck.
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