@Kcstreetracer
I seen some horrific in my time, so that statement is very subjective. Folks that tell me they have bad credit, I usually tell them this. As long as you've been keeping your credit obligations paid over the last 12 months, we can get you financed with a minimum down FHA loan. But they say, "I have some really high balance collections!"
Collections are dealt with a simple formula. Any collections over $2,000.00, we are required to hit you with an imaginary 5% payment. This is done effectively to shrink your buying power by adding that payment to debt to your DTI. Medical collections are disregarded. Charge offs are overlooked. (At least by many lenders).
If you find that you don't fit this shoebox, you can be placed into a credit rebuilding program. Or there are other NonQM Programs that you may qualify for. These programs do you have higher rates and fees, but are viable alternative as long as you employ an exit strategy. Meaning you have a plan on how to refinance into a tradidtional loan product late down the road. But generally speaking, there is a loan program for everybody. I encourage you to take that step and see what your options are.
Best wishes to you !
Branch Manager - Specializing in FHA, VA, USDA, Conventional, Jumbo, Portfolio and Non-QM Loan Products.
