Sub Prime Credit Programs

Allows people to become homeowners even if the credit may be imperfect. These programs are intended to be a second chance. Once good credit is re-established, refinancing to a lower rate becomes a possibility.

Advantages

• Excellent for those re-establishing credit
• Gets the family into a home
• Fixed rate for 2 to 3 year period then becomes adjustable

Disadvantages

• Higher rates when loans adjust
• Prepayment penalties usually apply
• When Rates adjust, refinancing or selling are usually your option