When shopping for a mortgage, you might have been told that you will need to look for a non-prime mortgage. You may not mind doing so, but you might not be sure about what this even means. Non-prime mortgages are for buyers who might not be considered "prime" candidates for a traditional mortgage. These are some of the people who might have to apply for a non-prime mortgage in order to buy a home.
Those Who Don't Have Good Credit
First, those who don't have good credit can still sometimes buy a home. However, those with lower credit scores are not usually going to be able to qualify for a typical mortgage. They may have to look for a lender that specializes in working with potential home buyers who aren't in the best credit situation. Of course, there are generally still some credit requirements, although they aren't as strict.
Buyers Who Have a Smaller Down Payment
It's generally suggested to have a down payment when buying a home. If you have a smaller down payment then you might still be able to buy, but you'll need to find a lender that will work with you. This can be even harder to do if you don't meet all of the lender's other criteria, such as having a certain credit score. However, non-prime mortgage lenders may be able to help, although the smaller down payment might mean that you will need to look for a more affordable home.
People Who Don't Have Established Credit Scores
Some people don't have bad credit, but they don't have good credit, either -- they might not have a credit score at all. For example, if you are trying to live debt-free, you might not have a credit score. A non-prime wholesale lender may be able to help by doing manual underwriting, such as by looking at your utility bills and income to help you get qualified.
Those Who Have Non-Traditional Forms of Income
Many traditional mortgage lenders are looking for proof of a typical W-2 income. Not everyone makes money in a regular nine-to-five job, though. For example, freelancers and other self-employed individuals might not have the same types of proof of income as those who work in more traditional work settings. For those who have non-traditional forms of income, getting approved for a more traditional mortgage isn't always easy. Non-prime mortgage lenders might be more willing to work with those who have non-traditional incomes, although they will still have to provide proof that they have an income coming in and that they will be able to make their mortgage payments each month.
How many times have you put off making repairs around your home because you didn't have the money to make them immediately? Have those decisions caused even more repair bills because you waited to make the repairs? I have done this several times in the past, and, oftentimes, not making those repairs have cost me far more to complete because the damage spread. The whole reason I created my blog was to help others find the financing they need to make home repairs without worrying about choosing the wrong type of financing option. Hopefully, my hard-learned lessons will help you avoid the same struggles that I have undergone.