Frequently Asked Questions

Q: What are my obligations if I fill out a loan application?
A: There are no obligations when you apply for a loan with Bacon Financial. Many companies charge between $300 and $500 just to apply. At Bacon Financial we feel this is unnecessary.

Q: What kind of costs can I expect before my loan closing?
A: Although we have no application fee, if your loan application meets your needs and has been determined to meet our minimum loan qualification guidelines we will require you to pay a loan commitment fee and for your appraisal prior to closing.

Q: What will my rate be if I have bad credit?
A: Rates depend on many factors. Credit is one of those factors. Some other factors include the amount of equity in the property, the level of income documentation provided and the debt level you have as compared to income. Until we understand the structure of your specific loan and the loan is approved, the interest rate can only be estimated. Our goal is to provide you with the lowest interest rate possible so we can earn the business of you and your friends in the future.

Q: What down payment is required if I cannot document my income?
A: if two of your three credit scores are as low as 600 you may qualify for 100% financing. Even if self employed for one day you may still qualify for 100% financing with credit scores as low as 620. Credit scoring requirements can change often for these types of loans and may depend on other factors. To fully qualify please apply for your loan with Bacon Financial.

Q: How can I avoid paying Private Mortgage Insurance (PMI) on my mortgage?
A: Bacon Financial has many loan programs with up to 100% financing on one payment with no PMI requirement. For some loan programs PMI is unavoidable. Please consult with one of our loan consultants for greater detail.

Q: What is an interest only loan and how can it help me?
A: An interest only loan should really be described as an interest only OPTION loan. Each month when you make your mortgage payment you have the option of paying principal plus interest or simply the interest. This can help greatly if you have significant financial obligations in addition to your home payment or if you are looking to afford more home with a lower payment. There are interest only option loans available for purchase or refinance. They come in the form of fixed rates or adjustable rates.

Q: What is the lowest down payment necessary when buying rental property?
A: Bacon Financial we have many investment property loans available with 100% financing. Even if you are unable to verify your income you may qualify for 100% financing. Credit score requirements will vary so please contact a Bacon Financial representative for more details.

Q: What are my options if I had or currently am in Chapter 13 Bankruptcy?
A: This question depends on whether you are purchasing or refinancing. With Bacon Financial if you are purchasing a home and have completed or been in a Chapter 13 for over one year and have made all payments on-time you may qualify for 97% financing with single digit rates on FHA loans or 100% financing on VA loans. If you are refinancing you may be able to pay off your Bankruptcy with a home equity loan. If the home is not in the Bankruptcy we may be able to refinance the home while leaving the bankruptcy open and lower your payment with up to 97% refinancing on FHA loans or 100% refinancing on VA loans.

Q: What are my options if I have a Chapter 7 bankruptcy?
A: If you have been in a Chapter 7 bankruptcy you may qualify for a 100% financing as soon as one day after the Bankruptcy has been discharged with two of three credit scores as low as 580. Two years after discharge of a Chapter 7 Bankruptcy you may qualify for a 97% financing on FHA loans and 100% financing on VA loans. All of the preceding scenarios assume good post-Bankruptcy credit history.

Q: What if I have a Foreclosure?
A: With Bacon Financial as early as one year after a foreclosure you may qualify for 100% financing with two of three credit scores as low as 580. Three years after a foreclosure you may qualify for 97% financing on FHA loans and 100% financing on VA loans at single digit interest rates.

Q: What if I have Judgments or tax liens?
A: Depending on the specifics of your situation you may qualify for 100% financing with open judgments on your credit with two of three credit scores as low as 580. For complicated issues such as these we recommend a personal consultation with one of our loan officers, please call the number above or apply on our convenient loan application.

Q: What if I am in CCCS?
A: Most mortgage lenders consider CCCS the same as a Chapter 13 bankruptcy. If in CCCS for at least 12 months you may qualify for 100% financing at single digit interest rates on FHA loans. If in CCCS for only one day, you may qualify for 100% down purchase loans on conventional loans and 80% cash out loans on your primary residence. Although we have many programs for those currently in CCCS there may be some circumstances requiring you to be out of CCCS to qualify.

Q: Can I refinance a Contract for Deed?
A: Bacon Financial does refinance its Contracts for Deed. We require cancelled checks showing the last twelve months of mortgage payments.

Q: How do I qualify for a low down payment if I have bad credit?
A: At Bacon Financial With two of three credit sores as low as 560 you may qualify for 100% financing on a conventional mortgage. If your scores are lower than 560 then you may qualify for 97% financing on FHA loans or 100% financing on VA loans. Other restrictions apply. Please complete our convenient online loan application to qualify.

Q: What are my options if I am behind on my mortgage?
A: If you are less than three months behind on your payment we have many programs to help you refinance your home. If you are over three months behind on your home the most we are capable of refinancing is 65% of the value of your home. For complicated issues such as these we recommend a personal consultation with one of our loan officers, please call the number above.

Q: What is the difference between an ARM and a Fixed Rate home Loan?
A: ARM stands for adjustable rate mortgage and means that the rate will increase as the loan matures. A fixed rate is one that will remain the same
through out the maturity of the note.

Q: Because I am self-employed, will I have a difficulty in proving my exact income?
A: No. There are stated income loans that allow the borrower to state their income on the application and there is no verification of the amount by the
investor.

Q: What are the advantages to buying a home instead of paying rent every month?
A: The number one advantage is gaining an asset. There are tax benefits from the interest that is paid on a home loan.

Q: Why is it better for me to pay my insurance and taxes separate from my monthly mortgage?
A: This gives you the control and peace of mind that they are paid correctly and in a timely manner.

Q: If something is incorrect on my credit report, how can I have it removed or corrected?
A: A simple letter of dispute to the credit reporting agency will usually correct the problem. You are entitled to one free credit report per year from these agencies.

Q: I have only been on my current job for a little while. Can I still qualify for a new home loan?
A: Yes.

Q: Do I have to sell my current home first, if I am planning to purchase a new home?

A: Only if there is a payment on the property that would place you over the acceptable debt ratio from the investor.

Q: I would like to sell my current home. How can I do so without paying a realtors commission?
A: There are many great For Sale By Owner programs available. Just ask.

Q: I own my current home with my previous spouse. How can I re-finance my home loan on my own?
A: We have access to several different loan programs that are available to buy out or payoff ex-spouses or other co-owners.

Q: Can I still purchase a new home or re-finance my current home loan if I am retired, or receive only Social Security or Disability benefits?
A: Yes. As long as your income is appropriate for the loan applied for.

Q: Can I pay off all of my outstanding debts with the equity in my current home?
A: Yes. This is a great idea because the interest on the new home payment then becomes tax deductible, and credit card debts, etc. are not usually tax deductible.

Q: I have had a difficult time maintaining a good credit history/filed bankruptcy. Can I still qualify for a home loan?
A: Yes. We offer a wide variety of loans for individuals that have serious credit issues.

Q: I don't have any money for a down payment. Can I still obtain a home loan?
A: Yes. There are loan programs up to 100% LTV's available.

Q: This is my first home. Do I need somebody to co-sign the loan?
A: No. Your income is all that will be necessary to qualify for a loan.

Q: How much house can I afford?
A: This would be determined by your debt to income ratio. In other words, how much income do you have coming in versus bills that you pay out.
Different loans allow different ratios.

Q: Will a previous or pending foreclosure prevent me from receiving a new home loan or re-financing my current home?
A: No. We have many loan programs available that accept both foreclosure and bankruptcy.

Q: How long does it take to close on a home loan once the process starts?
A: Usually it is 2 to 3 week process.

Q: What fees will I initially have to pay to begin the loan process?
A: Upfront fees would typically include appraisal, credit report and application.

Q: What type of interest rates will be available to me for my home loan?
A: This will vary depending on the loan program selected, rates change constantly.

Q: Can I still get a home loan if I have a large amount of outstanding debt?
A: Yes. Debt is only one factor considered when approving a loan!

BACON FINANCIAL

Investment Solutions

Frequently Asked Questions