Purchase (Programs for damaged credit)

• Damaged Credit (derogatory credit allowed)
  • Credit Grade- depending on how much derogatory credit you will be assigned a corresponding credit grade (A⁺, A, A-, B, C⁺, C, C-, or D), please contact Velocity to help you determine your credit grade.
• Loan Limits:
  • Minimum Loan Amount- $30,000
  • Maximum Loan Amount- up to $500,000
  • Exceeding the Loan Limits- in special circumstances the maximum loan amount can be increased.
• Income:  (Monthly Debt vs. Monthly Income)
  • Cannot exceed: 40 - 55% (All Monthly Debts including Housing vs. Monthly Income).  The amount of monthly debt allowed changes depending on your credit grade.
• Bankruptcy- allowed, but it will impact your credit grade depending on when the bankruptcy was discharged.
• Charge-offs, Collections, Foreclosures, & Judgments- allowed, but once again it will impact your credit grade, and paying off certain accounts might be a condition to receiving a mortgage loan.

• Please note:  mortgage lenders that allow damaged credit usually will not loan the full purchase price.  Instead they will loan a portion of the purchase price (determine by your credit grade), and the remaining portion of the purchase price will need to be covered by a down payment or seller financing (see descriptions below).
• 5% Down Payment:  usually 5% of your own money is required.   (There are very limited circumstances where you won't have to come up with any money).
• Seller Financing:  this is when the seller is willing to take a private contract (2nd mortgage) on any remaining portions of the sales price.   The terms of the 2nd mortgage will have to be determined by you and the seller before the purchase can be finalized.  
• General Guidelines on the Maximum Amount Financed based upon Credit Grading:
   

  Credit Grade	Max. Amt. Financed	Credit Grade	Max. Amt. Financed
  A+	95 - 100%	C+	80%
  A	90 - 95%	C	75%
  A-	85 - 90%	C-	70%
  B	80 - 85%	D	65%

Refinance (Programs for damaged credit)

• RATE-TERM REFINANCE= reduce current interest rate (less than 1% cash out).
• CASH OUT REFINANCE= debt consolidation, or get cash out.
• ELIMINATE MORTGAGE INSURANCE= accomplished by a refinancing your 1st mortgage, or by a 1st and 2nd mortgage combo.

• Damaged Credit (derogatory credit allowed)
  • Credit Grade- depending on how much derogatory credit you will be assigned a corresponding credit grade (A⁺, A, A-, B, C⁺, C, C-, or D), please contact Velocity to help you determine your credit grade.
• Loan Limits:
  • Minimum Loan Amount- $30,000
  • Maximum Loan Amount- $500,000
  • Exceeding the Loan Limits- in special circumstances the maximum loan amount can be increased.
• Income:  (Monthly Debt vs. Monthly Income)
  • Cannot exceed: 40 - 55% (All Monthly Debts including Housing vs. Monthly Income).  The amount of monthly debt allowed changes depending on your credit grade.
• Bankruptcy- allowed, but it will impact your credit grade depending on when the bankruptcy was discharged.
• Charge-offs, Collections, Foreclosures, & Judgments- allowed, but once again it will impact your credit grade, and paying off out certain accounts out of the new mortgage might be required.

• Please note:  mortgage lenders that allow damaged credit will only loan a certain percentage of the home's total value.  The percentage that they will loan is determined by your credit grade. (See the chart below). 
• General Guidelines on the Maximum Amount Financed based upon Credit Grading*:   

  This chart applies to both Cash Out & Rate-Term Refinances.

  Credit Grade	Max. Amt. Financed	Credit Grade	Max. Amt. Financed
  A+	95 - 100%	C+	80%
  A	90 - 95%	C	75%
  A-	85 - 90%	C-	70%
  B	80 - 85%	D	65%

*This applies to owner-occupied single family residences only, other types of property may have different refinancing requirements contact Velocity for details.