Colorado Home Mortgage Loan

On the weekends I like to sit down and talk about a variety of questions brought up in the mortgage industry.  I also try to ensure that I am using some key terms to help in my web page optimization.  Today I want to talk about what consumers refer to as Bad Colorado Credit Home loan products.  These loans were extremely popular in Colorado over the last few years and unfortunately many consumers are paying the price for those loans today.  Bad Colorado Credit home loan programs had a fixed rate for only 2 years, if you were lucky you may have been able to lock that rate for 3 years.  Bad Colorado Credit home loans or sub-prime loans were designed to get out of when the fixed rate period expired.  If you did not refinance your Bad Colorado Credit home loan in time, you would have experienced a 2% rate increase every 6 months until you hit the Bad Colorado credit home loan max market rate (about 12%).  Loose lending by all lenders allowed a number of home buyers to buy homes that probably should not have.  As an industry we only have ourselves to blame for this.  We should have counseled our buyers properly and tried harder to get them into programs like FHA, which are  designed to help people who’s credit may not have been stellar in the past.  I know that in order to maintain a relationship with you for life, I have to build that credibility right from the start, even if I have to tell you something you don’t want to hear.  My heart is in the right place and I would never want my clients to face the obstacles currently faced by those who currently have Bad Colorado credit home loans.  With this said, I conduct credit counselling for all my client regardless of their credit score.  I also provide free credit reports for you and your friends.  I believe that everyone deserves a chance and I take great pride in helping consumers get the right program for the right house. Have a great day and God bless.

Daniel

Bad Colorado credit home loan programs have been around for a long time. I have two parts to this story the 1st half of this article can be found on www.coloradomortgagebanking.com/news in this section I want to talk about how Bad Colorado credit home loan programs are influenced by the value of homes and how Colorado is not as bad off as other states offering Bad Colorado credit home loan programs in their states.  Bad Colorado credit home loan programs or subprime loans were established to offer credit risk individuals a solution to buy a home, but were designed to be refinanced in 2 or 3 years depending on the lock period.  In todays market Bad Colorado credit home loan programs are a thing of the past and investors are suffering today from a large amount of default creating credit rating issues and some lenders to close thier doors all together.  The biggest mistake lenders made with these loans are that they made it available to any mortgage broker willing to orginate home loans.  The mistake is in the follow through and most of these brokers did not provide this crucial component to their clients creating an atmospher that had these home buyers fail and go into a desperate situation with their Bad Colorado credit home loan.  The biggest issue in refinancing these programs has to do with value.  These programs required that home values increased to a point where refinancing was easy normaly about 10% equity is required to refinance someone who is considered a high credit risk.  Now we all know that if we had a 5% increase in the last 2 years total then we are lucky.  Thank God we live in Colorado where we have still seen some increases in most of the country they have actually seen their house go down in value making Bad Colorado credit home loan programs offered in other states impossible to refinance.  In Colorado and any other state seeing values increase even a little may find their solution offered in the way of a FHA loan.  Congress has its biggest influence on mortgage programs through the Federal Housing Administration and the loans they insure.  These FHA loans only require 5% equity, yes 5% equity if you are doing a cash out refinance if you are just financing the mortgage you got when you purchased your home they will only require 3% equity making it very simple to refinance you loan.  Hopefully your mortgage broker did a good job in the follow through to help ensure your credit was on track to qualify.  Qualifying out of your Bad Colorado Credit home loan into a FHA loan is simple.  One year of clean credit history and no current collections or default falling within the same year.  There are always exceptions I have been able to provide clients with FHA loans through an automated approval system that allows some high risk loans to qualify.  I can’t express enough anyone can get into the mortgage business, but not any can provide the serves required to meet your expectations.  If your broker disappears after the loan is done then odds are you found the wrong person.  You can survay any of the 3000 plus clients in my data base and they will all tell you that my relationship begins when you close your loan with me.  Bad Colorado credit home loan programs have a purpose and if property used can be a great resource to get you into a home, but it requires continued follow through.  FHA loans are a great solution to Bad Colorado credit home loan programs and I offer all of these.  Have a great day today and watch out summer is right around the corner.