Michael Holigan: You have to get your family into a new home right now, but you do have some credit problems. There's a way to do that and that's with B & C lending. That's for difficult credit in case you've had some problems in the past and you just haven't had time to improve your credit yet.
Some of the advantages are: you can get a loan right now. Not one of the regular loans, not FHA, VA or a normal conventional. But you can move into a house immediately. Another advantage is after you've improved your credit, you can go ahead and refinance into one of the normal programs.
Some of the disadvantages though are: there's no set underwriting guidelines. It's not one of the normal programs, so they can make up any rules they want because these are private investors. Interest rates are higher. You're a higher risk, so you are going to have a higher interest rate. Also, loan products unattractive. They don't follow the normal rules, so ARMs can adjust whenever they want. Things are totally different. No guidelines. Remember, the higher the risk, the higher the interest rate. The worse your credit is, the higher your interest is going to be.
Now I don't want you to get B & C paper and stay in it for 30 years. This is a temporary loan until you can improve your credit and then refinance and get a normal loan whether it be FHA, VA or conventional.
Episode 015 1995 - 96 Season
| Cabinets | Countertops | Christmas Tree Formula | Kitchen Remodel | Leftover Concrete | Stenciling (design) | Lending for Difficult Credit |
To order a Video Tape, call 1-800-TO-BUILD and ask for Episode #015.