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Wednesday, September 24, 2014

What is a Sub Prime or Bad Credit Mortgage?

Sub Prime Mortgages are back (they really never went away).  But what is a Sub Prime Mortgage?

It’s a home mortgage loan for borrowers who have a credit issue giving them a low credit score.  Typically a credit score below 550.  Bad credit sub prime mortgages are easier to qualify, since the lender is focusing more on the asset value and loan to value rations.  They lenders are more flexible in the lending criteria. 

Bad credit mortgage loans have higher interest rates and higher down payments than regular mortgage loans. Typical rates as of today start at 8% with a 30% down payment. 

If mortgage is for an owner occupied home, then the lender will have to determine if the borrower can afford the payment on the loan.  This is called Debt to Income Ratio, or DTI.  The ratios are typically 35/50%.

In the mortgage world, there is a loan for everyone.
It just depends on down payment and interest rate.

However there are some items that will stop a deal dead in its tracks, even for a Bad Credit Mortgage.  Typically the lender will not loan if the borrower has outstanding judgments, IRS Tax Liens, or is involved in a law suit or criminal charges.

Most people prefer to use a bad credit mortgage loan simply to get into a home and help rebuild credit.

Bad credit (or sub prime) mortgage loans are specialized mortgage loans designed for borrowers with credit issues. Bad credit mortgage tend to have higher interest rates and higher down payment requirements than regular mortgage loans. The higher interest rates mean that bad credit mortgage loans also tend to have higher monthly payments than regular mortgage loans.

Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Mortgage Loan Originator - Making A Lot of Money

Level 4 Funding LLC specializes in the Sub Prime and Private Money Lending Environment. 

You will:
Obtain and analyze customer financial and credit data.
Manage your personal loan pipeline.
Serve as the primary liaison with bowers and outside entities (realtors, title and escrow officers, etc.) and other company employees to facilitate a prompt and efficient loan closing
Negotiate terms and conditions of loan programs with borrowers.
And you will make a lot of money.

What we provide for you:
Percentage  1.5% of each deal.
In house leads. We are number #1 on Google.

Employee Benefits:
Sorry no benefits, you just make a lot of money.
You will have an office, but you can work independently away from the office.

Required Skills and Qualifications:
Must be licensed as a Mortgage Loan Originator (MLO) in Arizona
Must be able to close the deal.
Prior Loan Origination Experience

About Us:
Level 4 Funding is a Mortgage Broker Company with an array of in house investors and wholesale lenders.  We are in a niche market specializing in Sub Prime loans and Private Hard Money Loans.  FHA/VA – Sorry we don’t do them-- go work for Quicken.

We use:
Point Central, Caylix.

Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027