Subprime borrowers can once again get mortgages, but lenders are not just handing out loans as they did in the early 2000s. Some lenders can charge interest rates upwards of 10% and require down payments as high as 25-35% for subprime loans.
The FHA is one of the government-backed programs that still offers a low down payment option of only 3.5% with credit scores below 650. Borrowers can qualify with scores even as low as 580 but higher down payments or interest rates may be required. USDA and VA loans are also available to specific borrowers with less than ideal credit. Associates Home Loan of Florida, Inc. offers the best rates in Tampa on FHA, VA, and USDA loans to borrowers who qualify.
Many individuals who have filed bankruptcy think that it is unlikely that they will be able to buy a home, but this is not the case. Typically, a couple years after a bankruptcy discharge, many will be able to qualify for a home loan. Depending on the type of loan you are seeking, the waiting period can vary, but rest assured, your dreams of homeownership are not over. We work closely with Florida residents who have previously filed bankruptcy to help them purchase homes when other lenders won’t.