Recent Credit Event Loans

Recent Credit Event Loans

What Are Recent Credit Event Loans?

If you have a recent event that has damaged your credit score, it can be difficult to secure a loan. And even if you can borrow, the interest rate will typically be much higher due to the event. There are ways to get around a poor credit score due to a bad event, however; “bad credit home loans” can be made in different ways.

Can You Buy a House if You Have Bad Credit?

Yes, although bad financial events like a foreclosure or declaring bankruptcy can damage your credit score, there are still ways to buy a home. If your credit score is below 550, your options might be severely reduced from traditional lending options. If you can secure a loan, it often comes with higher interest rates or unreasonable terms for repayment. A recent credit event loan is one where the lender looks past one poor event to determine a person’s eligibility.

What Qualifies as a Recent Credit Event?

  • Short sale, deed in lieu, or foreclosure
  • Filing for bankruptcy
  • Restructuring debt
  • Defaulting on a payment
  • Obligation acceleration
  • Moratorium/repudiation or refusing to honor terms of an agreement
  • Defaulting on a loan

How Does a Bad Event Affect Your Loan Terms?

When you have a bad financial event in your history, it can lead to paying higher loan rates, the requirement of large down payments, or extra fees. A credit score of less than 680 usually affects your lending eligibility. Many lenders will consider you a higher risk and will make it more difficult for you to obtain a loan.

Getting a Home Loan With Bad Credit

There are ways to obtain a home loan even if you have a poor credit score. Non-traditional lenders, like HomeSpring, believe that one bad event should not stop you from your dream of homeownership.

We look past one recent event to see a bigger picture of reliability in repayment and seek solutions to help you obtain a loan for your client.