There are may factors that go into a mortgage approval and credit score is just one. There are other factors that can offset poor credit like size of down payment, income and most importantly, time. With enough time, anyone can get their financials in place for alternative lending to be an option for them.
Olympic Mortgages has helped hundreds of individuals and families build a plan to get them their first approval through B+ or alternative lending. Once in place, we work with you to transition from higher interest alternative lending to AAA rated lenders with better rates.
I have bad credit, what can I do?
If you have poor credit, there are 3 main factors that can help get you approved through alternative lending:
- Total Household Income – To make lenders feel more at ease having higher income can go a long way. Ensuring you are reporting all your income from side work or a rental suite can go a long way.
- Down Payment / Equity – For a refinance, having a larger amount of equity is key. Working with a broker that can help ensure you get the highest appraised value for your home can increase the total equity. If you are buying a new home, then having the largest down payment possible can get you approved. Instead of 5% down try for 20%.
- The Value and Type of Property – Selecting the right property is by far one of the largest factors. The value of the home is the collateral, and lenders look at this very closely. In additional, having a home that contains an income suite can alleviate many of the lenders concerns by having the extra income.
STAY IN THE KNOW, SIGN UP FOR OUR NEWS