Mortgages For Bad Credit Ohio With Low Credit Scores

Mortgages For Bad Credit Ohio With Low Credit Scores

Ohio homebuyers with less than perfect credit have approval options in qualifying for mortgages for bad credit and credit scores down to 500 credit scores. Ohio, a Midwestern state located in the Great Lakes region of America takes its name from the popular Ohio River. French fur traders initially colonized Ohio, but it later become a colonial possession of the British after the 1754’s French and Indian War. Some people call Ohio “Mother of Modern Presidents” because of the fact that seven Presidents have come from Ohio since 1869.
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History Of Columbus Ohio

History Of Columbus Ohio
More interesting facts about Ohio? Columbus, the capital city of Ohio is the place where the American Federation of Labor was founded. The first person ever to walk on the surface of the moon, Neil Armstrong, came from Wapakoneta. Who hasn’t heard of the Wright Brothers? But, what many people don’t know is that they came from Dayton. Ohio is the first state that enacted laws to protect working women. Ohio is also known as the Buckeye State because there are many buckeye trees in the state.

Ohio Real Estate Market

That was some general talk about the state of Ohio, but let us now move to the hot real estate market of Ohio. Currently, the median home value in the state stands at $431,000. In the last year, the home value in Ohio has increased by 9.9 percent and market experts have predicted that the prices will rise by 7.7 percent within 2022.

Rental Housing Market In Ohio

For homes that are currently listed in the state of Ohio, the median price stands at $449,000 while for homes that are sold, the median price is slightly less at $127,800. The median rent price in the state is $1490,00.

Average Ohio Home Prices 

For cities in Ohio, Hamilton is leading on the home value as the median home value here is $440,200. Columbus has the median home value of $420,500, Cincinnati stands at $413,400, Parma $403,600, Canton $388,200, Akron $362,900, Toledo $358,600 and the median home value in Dayton is $352,000.
If you’re looking for a home in Ohio, but have bad credit is holding you back from getting your dream home, then you should check out the bad credit home loan options. Let’s get to the details!

Ohio Mortgages For Bad Credit Homebuyers

Periods of bad credit can happen to the best of us. Even financially responsible hard-workers can run into financial crises such as loss of business, loss of job, reduction in wages, divorce, death in the family, illness, or other extenuating circumstances. Mortgage lenders fully understand people can go through periods of income interruptions due to extenuating circumstances. However, most folks recover sooner than later. Lenders want to see timely payments in the past 12 months.

Mortgage Approval With Outstanding Collection Accounts

It is alright to have prior bad credit, outstanding collections, and charged-off accounts but the borrower needs to have rebuilt and reestablished themselves and need to have been timely on all payments in the past 12 months. FHA, VA, and conventional loans do not require borrowers to pay outstanding collections and/or charged-off accounts to qualify for a home loan.

Ohio Mortgage Lenders For Bad Credit 

At Loan Consultants, we have several loan programs for homes in Ohio to aid those people who have bad credit and are unable to qualify for Fannie Mae or Freddie Mae loans. The first option to consider is are Ohio FHA loans for bad credit and low credit scores.

Ohio FHA Mortgages For Bad Credit Lending Requirements

Ohio FHA Mortgages For Bad Credit Lending Requirements
Federal Housing Administration (FHA) insures Ohio FHA home loans which allow borrowers to secure a home loan if they fail to qualify for conventional loans. Borrowers with poor credit or low credit history are often able to get the Ohio FHA home loans. FHA loans in Ohio are especially an ideal option for first-time homeowners because the down-payment is low and qualifying guidelines are flexible. There is also an option for refinancing with an FHA streamline refinance where Ohio homeowners can refinance up to 97.75 percent of their home’s loan to value.

How Can I Get Approved For Mortgages With Bad Credit

There are mortgage options for borrowers with bad credit and low credit scores. Borrowers can qualify for mortgage loan programs with bad credit. However, the key to getting approved is to show the lender that you have been timely on all of your payments for the past 12 months. Lenders understand people have gone through difficult financial situations due to interruptions in income. However, they want to see the borrower has recovered and has been timely for the past 12 months on all of their monthly debt obligations and are financially stable and responsible.

Government, Conventional, Non-QM Mortgages For Bad Credit

We will be discussing the credit requirements on government, conventional, and non-QM mortgages.
Here are the credit requirements on mortgages for bad credit and the basic requirements:

  • HUD, the parent of FHA requires a 580 credit score for a 3.5% down payment home purchase FHA loan with an automated AUS approval or manual underwrite
  • Borrowers can qualify for an FHA loan with under 580 credit scores and down to a 500 FICO with a 10% down payment and AUS approval
  • FHA and VA loans are the only two loan program that allow manual underwriting
  • Manual underwriting guidelines require timely payments in the past 24 months
  • Outstanding collections do not have to be paid on FHA, VA, and owner-occupant primary home conventional loans
  • The key to getting an approve/eligible per AUS is to have been timely on all your payments for the past 12 months
  • The minimum credit score requirements on conventional loans is 620 FICO
  • The U.S. Department of Veterans Affairs (VA) has no minimum credit score requirements on VA loans with an approve/eligible per automated underwriting system (AUS) or manual underwrite
  • Loan Consultants have helped thousands of veterans with credit scores down to 500 FICO
  • Non-QM loans has no waiting period requirements after bankuptcy and/or foreclosure

Non-QM loans will allow late payments in the past 12 months. The higher the risk non-QM lenders has to take, the higher the mortgage rates and down payment requirement on non-QM loans.

Ohio FHA Loan Requirements

FHA loans are the most popular loan program for first-time homebuyers with low down payments and lower credit scores.

  • Homebuyers need at least a 580 credit score to qualify for an FHA loan with a 3.5% down payment home purchase FHA mortgage.
  • Homebuyers with under 580 FICO and down to a 500 credit score need a 10% down payment versus a 3.5 percent down payment on purchase loans
  • Homeowners can do an FHA cash-out refinance with up to an 80 percent loan to value (LTV)
  • In case of bankruptcy, you’ll be eligible for Ohio FHA loan 2 years after Chapter 7 discharge (provided you’ve maintained good credit since then)
  • In case of Foreclosures, you’ll be eligible for an Ohio FHA loan 3 years after the foreclosure’s final date (provided you’ve maintained good credit since then)
  • There is a three year waiting period after a deed in lieu of foreclosure and/or short sale to qualify for an FHA loan in Ohio
  • Homebuyers in Ohio can qualify for an FHA loan during the Chapter 13 Bankruptcy repayment period
  • The Chapter 13 Bankruptcy does not have to be discharged but needs to be a manual underwrite
  • Trustee approval is required
  • There is no waiting period after Chapter 13 Bankruptcy discharged date but needs to be a manual underwrite if the bankruptcy has not been discharged for at least two years

2022 Ohio FHA Home Loan Limits

2022 FHA loan limits for single-family homes in median areas are $422,680. Maximum FHA loan limits in high-cost areas are $970,800 for 2022 on single-family homes. The limits of FHA home loans in Ohio vary depending upon several criteria including how many units are there in the property, the particular location, etc.
Please contact Loan Consultants for details about the FHA loan limits.

Alternative Mortgages For Bad Credit

Bad credit home loans in Ohio have now become very hard to get. If you don’t qualify for the FHA home loan with a lender due to the lender overlays, Loan Consultants has zero lender overlays. We can help borrowers with credit scores down to 500 FICO. Loan Consultants has other alternative mortgage loan programs such as non-QM loans, no-doc mortgages, asset-depletion loans, and non-QM loans one day out of bankruptcy and/or foreclosure. Homebuyers may have to try some of our other alternative and/or non-QM mortgage options. We have bad credit loan programs in Ohio for the following:

  • If you were denied by a bank or mortgage company due to lender overlays
  • Credit scores down to 500 FICO
  • Not having qualified income
  • Bad credit and late payments in the past 12 months
  • No credit tradelines trade lines
  • Outstanding collections and charged-off accounts
  • Did not meet the mandatory waiting period requirements

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Rebuilding Your Credit To Qualify For A Mortgage

Even if you don’t qualify for the loan programs we have to offer, we can assist you personally to repair your credit. Believe us, this is the step that you must take to get a loan for your dream home in Ohio. We’ll tell you some important things you can do to improve your overall credit score.

Quick Credit Fixes To Boost Credit Scores To Qualify For A Mortgage

Quick Credit Fixes To Boost Credit Scores To Qualify For A Mortgage
The first thing you should do is get your credit balance on revolving debt below 15 percent utilization. It’s better to carry 3 credit cards at 33 percent balance than have just one that’s completely maxed out. This can boost your credit card score from five to forty points within five to seven business days.
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Secured Credit Cards To Rebuild And Boost Your Credit Scores To Qualify For A Mortgage

Furthermore, if you don’t have good credit and you’re struggling to develop new credit, you should apply for secured credit cards. Getting three secured credit cards will expedite your rebuilding and re-establishing your credit and boost your credit scores. It is recommended secured credit card limits be in the amount of $500. This can really make a difference in credit. There are several websites available from where you can check your credit score. This won’t have any effect on your credit score and you can just tell the mortgage companies your score if you don’t want them to pull it.

Selling Financing Mortgages For Bad Credit Home Purchase Options

Another option for those with poor credit history is rent-to-own. But, for rent-to-own in Ohio, you’ll have to pay a large amount in down payment. If you need more information about the rent-to-own option, contact us at Loan Consultants at 844-275-2007. Text us for a faster response.

Contact The Experts At Loan Consultants To Help You Get Approved For Mortgages For Bad Credit

Getting a loan for a new home in Ohio with bad credit is far from impossible. You just need to be aware of your options and contact the right people who can really help you. We at Loan Consultants are here for you if you’re looking for a bad credit home loan in Ohio. If you have been denied a home loan or have any questions about real estate or mortgage please contact us at Loan Consultants at 844-275-2007.  Text us for a faster response. The team at Loan Consultants is available 7 days a week, evenings, weekends, and holidays.
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