How are Low Credit Mortgages Approved?
There are 3 Main Lending Criteria
1. Credit Score
As noted, the score should be between 500 and 630 for alternative lender consideration. Interest rate pricing will depend on credit, but also income amount and how much equity there is left in your home.
Income should be in some way or form, provable – whether income is from self-employment or with an employer. Check out below for some of the different ways that an alternative lender will look at income.
- Employment letter and pay stub
- Income tax returns
- Account invoices (self employed)
- Bank Account Statements
This said, there are a few alternative lenders, when presented with enough available home equity do not need much at all for proof of income. There are also second mortgages that can better fit into some situations where we do not want to lose the existing low rate. The alternative bad credit mortgage lenders can be quite flexible.
3. Quality of Property
Perhaps the most important aspect of alternative or bad credit mortgage lending is the quality of your property. The lender is mainly lending on the value of your asset and is looking at income and credit to a lesser extent. An appraisal will usually be required to show that your property is in reasonably good condition. Other than this, alternative lending can be smooth sailing.
Get Back up On Your Feet – The Credit Repair Guarantee
Just because your credit is low right now, doesn’t mean it will be in a year or two. We work with Canada’s top alternative mortgage lenders to get you through this time, and back into a lowest rate mortgage as soon as possible.
We work with you to ensure your score increases over the next year. In fact, if our free advice is followed, we guarantee your score to increase quickly! We can even stay in touch to make sure you always have all the help you need.
You’ll be out of your credit situation, sooner than you think, for less cost than you think – and most importantly – you’ll be out of your bad credit mortgage situation for good. Your long term financial success is what matters.
Principal Mortgage Broker (Lic. # M08006143), Certified Financial Planner (CFP), BA (Hons.)
Altrua Financial Inc. FSCO #13005
Book a Credit Impaired Mortgage Call with Brent. No Cost or Obligation.
- Over 12 years of experience
- Over 1000 mortgage transactions completed
- Highly specialized bad credit mortgage advice.
- Certified Financial Planning (CFP) designation that provides the right tools to help build credit and lower interest costs over time.