Smart Borrower Blog

Archive for the ‘Bad Credit Home Loans’ Category

Federal Reserve’s New Mortgage Lending Rules Go Into Effect October 1st

New rules to protect consumers from problem mortgages adopted by the Federal Reserve go into effect on October 1st. Individual states have adopted numerous laws to protect consumers, but the federal government is looking to prevent future problems like our current home foreclosure crisis by getting involved, as well. The new rules require mortgage lenders and brokers giving borrowers with weak credit to have more diligence. Home loans designed for people with weak credit are typically 1.5 percentage points higher in interest than the average prime mortgage rate. These rules were finalized in July of 2008, and prevent lenders from... more »

FICO Score Changes More Forgiving

Good news for those hoping to improve their credit. Changes to the FICO model that credit agencies use to determine your credit score is more forgiving for small credit blemishes, according to a recent article in the Wall Street Journal. The new formula, FICO 08, has been made available to lenders by the big three credit agencies; Experian, TransUnion and Equifax, since last month. Unlike previous versions, FICO 08 will not ding your credit score for bills in collections originally under $100. It is also less likely to lower your scores for occasional missed payments, although those with a pattern... more »

Bad Credit Home Loans May Work For You

The buzzword bad credit home loan almost sounds like an oxymoron, but they do indeed exist.   We often hear them referred to as a subprime market loan, B, C. or D credit lending.   Many people blame the subprime market for the condition of the current economy.   Although that may indeed be a contributing factor, it is not the only cause. People that have been credit must understand the position that they are in.   Regardless of what has put them in that position, they must ensure that if they go for a bad credit home loan, they... more »