Thanks to the diverse range of specialty mortgage loan programs offered by Angel Oak Home Loans, traditional issues such as a thin credit file or low credit score do not prevent prospective homebuyers from obtaining a mortgage loan anymore.

July 29, 2015

Prospective homeowners without the credit or down payment necessary to purchase a home through traditional lenders have long had to sit on the sidelines, watching home prices shoot up. The standard 20% down payment is often far more than most young households, first time home buyers, or those of poor credit are able to save for. Without the proper credit background, low credit mortgage loan applicants have for a long time had very little chance of any mortgage loan approval, even if they had the down payment necessary.

Angel Oak Home Loans, a company founded in 2008 at the beginning of the Recession, naturally came to provide a variety of mortgage financing options for poor credit home buyers. Home$ense, a low credit mortgage product designed specifically to help homeowners who had lost their homes in the global recession, allows borrowers to begin almost with a new slate. With Home$ense, prospective homeowners can take out a home loan even one day out of a foreclosure or short sale. Gifts may be used for up to 100% of the down payment. Furthermore, late mortgage payments within the last year are not a deal breaker. For self-employed home loan applicants, Home$ense provides a flexible means of proving income and financial stability, and 24 months of bank statements can be used to prove or determine mortgage loan eligibility.

Portfolio Select is another specialty lending mortgage program allowing people with credit scores as low as 640 to obtain a mortgage loan. Designed to allow those with low credit looking at opportunistic home purchases and who have been denied by the tightening of big bank lending standards, Portfolio Select offers common sense flexible underwriting and allows 1×30 day mortgage late payment.

Thinking about how to improve your credit score can go a long way for mortgage applicants with low credit, and by taking steps like paying off some debt or not opening new lines of credit in the months leading up to an application for a mortgage loan can help bolster your mortgage loan application.

Most importantly, borrowers need to know that whatever circumstance they may be in, whether they have a poor credit score, have declared bankruptcy in the last few years, are coming out of a short sale or foreclosure, have charge-offs and collections, or have been denied mortgage loans from other mortgage lenders, they still have mortgage loan opportunities with Angel Oak Home Loans.

Learn more about the Angel Oak Home Loan mortgage programs