How To Get A Subprime Loan in Huntington Beach

If you’re buying a home in Huntington Beach but you have less than ideal credit, you may want to consider getting a subprime mortgage in Huntington Beach.

Lenders always look at a borrower’s credit and finances before giving loan approval. When you don’t qualify for a conventional loan, you might qualify for a subprime loan as an alternative.

Read on to learn more about how subprime loans work and how to apply for one on your next home purchase.

What Is A Subprime Loan?

Subprime loans also known as non-prime loans are designed for borrowers with lower credit scores, usually below the 600 range. While conventional loans have more favorable terms and interest rates, subprime loans are an option that gives those with low credit scores to become homeowners.

Interest rates for subprime loans are as high as 8 to 10% depending on the lender and your current financial situation. Down payments can be from 25% to 35% since lenders are taking on more risk compared to working with conventional loan applicants.

If you don’t qualify for a conventional loan and want to check out subprime loans, get in touch with an experienced LA County mortgage broker to learn more.

How Do Subprime Loans Work?

Today’s subprime mortgages are regulated by the CFPB or the Consumer Financial Protection Bureau. The bureau has set a key rule wherein subprime borrowers must undergo a homebuyer counseling program with a representative approved by the U.S. Department of Housing and Development.

Subprime lenders usually require larger down payments compared to conventional loans. You may also pay more on interest rates and origination fees, but you'll have a longer repayment period.

If you have gone through a rough patch financially or have declared bankruptcy recently, a subprime loan may be your only option.

Ask about Huntington Beach home loans to know if you qualify for a conventional loan or subprime loan.

How Do I Get A Subprime Loan?

If your credit score range is in the 580 to 660s, you may apply for a subprime loan. Lenders define subprime differently and may have different requirements which means the best way to find out if you qualify for a subprime loan is to apply for one.

Don’t expect mainstream lenders to offer subprime loans since these types are riskier than conventional loans.

Look for portfolio lenders or those who offer non-QM loans on their marketing pitches for loans.

Apply for a Huntington Beach mortgage today and move closer to owning that dream home.

Need Help With Your Subprime Loan Application?

Are you one of those homebuyers who keep getting denied on your home loan application due to poor credit scores? No need to worry, your dream of becoming a homeowner is close than you think.

A subprime home loan by Lux Funding may be the answer to buying your first home.

Get in touch with one of our loan adivors and get started on your path to homeownership today!

 


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.