Can a Bad Credit Mortgage Be Used to Consolidate Debts?
If someone has a low credit bureau score, they are more than likely going to get a government back loan. Find out how different factors at lower credit scores can get someone to refinance with help from a financial specialist in this free video on mortgage assistance and personal finance.
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Hi this is Matt McKillen with Innovative Financial Group, the question posed to me today is can a bad credit loan help consolidate dates from a borrower. Well traditionally the products that are available in the market place today versus a few years ago with the sub-prime loans, generally if you have lower credit bureau scores you're more than likely going to go with a government back loan, a federal housing authority loan. These loans have very attractive rates that do work with people with less than perfect credit. As long they are good job stability, maybe some alternate forms of credit that can be verified, maybe paying a car insurance or letters from your utilities. So all of these different factors at the lower credit scores can get someone into a mortgage or a refinance. Now typically FHA will allow you up to ninety percent of your appraised value on your home to consolidate debts or do home improvements. So for example, if you have ten thousand dollars in credit cards, and your minimum payments on those may be four to five hundred dollars a month, you can refinance your mortgage through FHA even with less than perfect credit, and actual pay off all of those debts. A lot of my clients have found that they save maybe two or three hundred dollars a month in payments after they consolidated the credit cards. So again if you do have less than perfect credit there still are mortgage products available out there to help you consolidate your debts. My name is Matthew McKillen with Innovative Financial Group.