Bad Credit - Need a Mortgage? There Are Options.

Don't let bad credit hold you back from entering the housing market.  As a mortgage broker I have many options available to help you achieve your goal of home ownership.

With the increase in housing prices across BC, people that would like to purchase are feeling frustrated because their opportunity for home ownership seems to be slipping away. Home ownership can offer many advantages including controlling your monthly housing costs as vacancy rates decrease especially in the lower mainland.

Thanks to many new mortgage products being offered being able to qualify for home ownership is easier than ever. Banks can now offer up to 100% financing for home purchases in addition to the different mortgage programs that they offered previously.

Forget the 5 C’s of credit, there are to 3 primary factors when qualifying for a mortgage. The 3 primary factors when qualifying for a mortgage are the amount of income you have, the amount of debt you have and the payments and last but not least, your credit rating. Your income vs. your current debt payments is what lenders use to determine whether or not you can afford the cost of carrying the house. Your credit rating often referred to as the credit bureau helps the lender determine your willingness to repay past debts.

While banks will allow your total monthly debt payments to account for up to 44% of your monthly income, non- conforming lenders, available primarily through mortgage brokers, can allow as much as 50% of your monthly income to be used for qualifying purposes.

Non-conforming lenders will “self-insure” their mortgages which allow them to have far less stringent guidelines than the traditional lenders currently have. They are able to accept a much wider variety of income types, greatly improving your debt servicing ratios and ability to qualify for your mortgage. Some examples of acceptable income are self employed income, as little as one day in business, part time employment and even non-declared side jobs. Other commonly used income includes GST cheques, child tax, support payments (both court ordered and not), pensions, foster parent income, workers compensation payments and even rental income from a roommate or illegal basement suite.
 
Non-conforming lenders can make homeownership a reality for many potential homeowners who don’t believe they would qualify at their bank. The truth is that many people are scarcely aware of their existence. Most non-conforming lenders offer their mortgage products exclusively through mortgage brokers and do not deal with the public directly.
As a mortgage broker I have access to both the traditional and non-conforming lenders which is extremely valuable when you are looking to purchase a home. I’ll analyze your financial situation and determine which mortgage product and strategy is right for you.

Don’t miss out on buying because you think you can’t qualify with today’s prices.  Call Brent Irving at 604-764-6336 to discuss your mortgage options.