As Homeowners from the Crash Get Back on their Feet, there is New Demand for Nonprime Loans to Knock them Back on their Ass
Here we go again…
“For so long people have known or thought that if their credit was not pristine, they had no opportunity to buy a house, and the way real estate works, Realtors filter people out. They have learned to ask lots of questions since the crash, to ask ‘have you had a foreclosure or a bankruptcy?’ and if they say yes the Realtor says ‘talk to a mortgage lender and call me back in a couple of years when you can qualify,’ but now Realtors and lenders are learning there are some options out there for these people,” Hutchens said.
He said that a few years ago, real estate agents might have just stayed away from clients who didn’t qualify for conventional loans, but that today more and more Realtors understand that people with less than great credit might qualify for a “band aid loan and then work on refinancing later.”
With interest rates on most of its loans ranging from the 5s to the 9s, he said most borrowers intend to refinance as soon as they can. In addition to nonprime loans for people with less than perfect credit, he said Angel Oak also underwrites interest only loans for people with better credit.
What could possibly go wrong…
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Instead of taking the high interest loan offed, most around here just go apply for welfare and many other assistance programs. Throw which way to go on the government and see how quick a mortgage amount at a reasonable rate appears.
You will be screw at the amount you will take!