Bad Credit Mortgages in Minneapolis

If the only thing standing between you and a new home is your fear that you won’t be approved for a home loan, the Kris Lindahl Team would like you to know that you may just get that loan, even with dings on your credit.

Loans for folks with less-than-perfect credit (typically scores below 600) are known as sub-prime loans and they differ from conventional loans in several ways.

The Kris Lindahl Team’s lending partners help sub-prime borrowers and some of them have even granted our clients more favorable rates than the high interest charged by other lenders.

Credit Scores and Bad Credit Home Loans

If this is your first home purchase you may not be familiar with how credit scores work and how lenders use them when determining whether or not to lend you money.

For home loans, the Fair Isaac Corporation, or FICO, is the go-to company for lenders. They use your credit reports from the big three credit reporting companies to determine a three digit credit score, from 300 to 850. Borrowers with the best credit have higher scores.

To determine your score, FICO takes into account many fact ors, including how you’ve paid your bills in the past, how much total debt you have, the types of credit you use and more.

Candidates for Bad Credit Mortgages

The Lindahl Team’s lending partners are the experts and they will be the ones to analyze your credit score and reports to determine if you qualify for a mortgage. Use the following, however, as a rough guide:

  • Credit scores of 620 or lower
  • Two 30-day late mortgage payments within the past year
  • One 60-day late payment on a mortgage during the past year
  • Bankruptcy or foreclosure within the past 24 months
  • A high debt-to-income ratio

Again, this is just a general guide. To know if you qualify you’ll need to speak with one of our lending partners. If you’re interested, contact us.


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