Can I Get a Low Credit Score Loan Now?
For people who, in the past, had a hard time getting loans and/or holding on to their homes, the new US president is working to help the American public survive the financial crisis by making available funding for loans and refinancing. Read on to get information about these low credit score loans and how to make sure the loan you're applying for is part of the program.
President Barack Obama, in February 2009, signed a stimulus package, called the 2009 American Recovery and Reinvestment ACT, of several hundred billion dollars to revive our economy. Under this package is several billion dollars allocated for helping people currently in risk of foreclosure hang on to their homes. Is this loan for you if you've got a low credit score?
Under Obama's stimulus package there are two kinds of loans available - the Home Affordable Refinance program and the Home Affordable Modification program. The first step to finding out if you'll qualify for any of these is to visit the government's project website, MakingHomeAffordable.gov. There's a short questionnaire that you'll have to answer. If you qualify you'll be presented with a list of the documents that you'll need to present to your lender when you apply. If you don't qualify you'll be presented with other options that you can apply for.
Both programs are voluntary on the part of the lenders, so they're not mandated by the government to participate. Some do; some don't. Many consumers have expressed frustration at the refusal of some lenders to grant them a refinance or modification under this program, and some have engaged the services of lawyers (who talked to the lenders on their behalf) with success. The truth is, some lenders will try to get out of it because even though there are incentives for them, they want to make more money; that's what they're in business for.
If you're planning to apply for a bad credit score loan under this program, the government gives the following advice on what to watch out for:
1) The Making Home Affordable Program is free; you shouldn't have to pay a fee for assistance to apply or to get information.
2) There are no official paid counseling services accredited by this program, so if anybody asks you for an upfront fee to give you counseling or modify your loan, don't give it.
3) Beware of people or organizations who say they can help you save your home if you transfer the deed to your house to them. That's like giving your property away! Unless it's your mortgage company that asks for it to forgive your debt, don't sign your deed over to anybody else.
4) If any organization other than your mortgage company asks you to give your payments to them, make sure your mortgage company knows about and agrees to this.
It is expected that there will many organizations jumping onto the bandwagon to take advantage of the opportunity to make money from unsuspecting people, so buyer beware. The government has launched a nationwide campaign to catch these organizations and stop their operations. If you suspect that the organization you contacted is a scammer, call (888) 995-HOPE to report it.
With a bad credit score you're at a very vulnerable stage, and there will be parties trying to take advantage of you. You can visit our website to learn more about precautions you should take on low credit score loans, as well as the different ways you can improve your credit score. We'll help you rebuild your credit for free with our credit advice.
Under Obama's stimulus package there are two kinds of loans available - the Home Affordable Refinance program and the Home Affordable Modification program. The first step to finding out if you'll qualify for any of these is to visit the government's project website, MakingHomeAffordable.gov. There's a short questionnaire that you'll have to answer. If you qualify you'll be presented with a list of the documents that you'll need to present to your lender when you apply. If you don't qualify you'll be presented with other options that you can apply for.
Both programs are voluntary on the part of the lenders, so they're not mandated by the government to participate. Some do; some don't. Many consumers have expressed frustration at the refusal of some lenders to grant them a refinance or modification under this program, and some have engaged the services of lawyers (who talked to the lenders on their behalf) with success. The truth is, some lenders will try to get out of it because even though there are incentives for them, they want to make more money; that's what they're in business for.
If you're planning to apply for a bad credit score loan under this program, the government gives the following advice on what to watch out for:
1) The Making Home Affordable Program is free; you shouldn't have to pay a fee for assistance to apply or to get information.
2) There are no official paid counseling services accredited by this program, so if anybody asks you for an upfront fee to give you counseling or modify your loan, don't give it.
3) Beware of people or organizations who say they can help you save your home if you transfer the deed to your house to them. That's like giving your property away! Unless it's your mortgage company that asks for it to forgive your debt, don't sign your deed over to anybody else.
4) If any organization other than your mortgage company asks you to give your payments to them, make sure your mortgage company knows about and agrees to this.
It is expected that there will many organizations jumping onto the bandwagon to take advantage of the opportunity to make money from unsuspecting people, so buyer beware. The government has launched a nationwide campaign to catch these organizations and stop their operations. If you suspect that the organization you contacted is a scammer, call (888) 995-HOPE to report it.
With a bad credit score you're at a very vulnerable stage, and there will be parties trying to take advantage of you. You can visit our website to learn more about precautions you should take on low credit score loans, as well as the different ways you can improve your credit score. We'll help you rebuild your credit for free with our credit advice.
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