People with poor credit ratings often have trouble sourcing a home loan. Many lenders now offer what is known as ‘non-conforming loans’ for people in this type of situation. While lenders are willing to overlook prior credit problems, they will want to see some evidence of your ability to repay the loan. A larger deposit than traditional loans will generally be required also.
As with any home loan there are pros and cons, the pros are that it overlooks poor credit rating which can be helpful if you have a poor credit history.
The cons are that there is a higher interest rate than traditional loans.
For more information, contact us today.