Whenever you experience an unexpected or unavoidable problem in your life which leads to credit problems, always remember to retain your documentation about the cause of the problem. People sometimes don't want to remember that bad period of their life and throw away documentation which could later be used to help a lender verify their explanation for the credit problems and help in obtaining a mortgage.

If there is a one-time incident that caused you to fall behind on your bills, you should take a moment to write a letter of explanation describing the event. A letter of explanation will most likely be required for a high risk lender to approve your loan.

Most high risk mortgage lenders will look closely at the value of the project or home. For residential high risk loans, a broker price opinion (BPO) as well as an appraisal is normally ordered. Most high risk lenders will loan up to a 65% Loan to Value, although some lenders are more aggressive and some are more conservative.

Many lenders who are not high risk lenders specifically will be able to help many homeowners with the new FHASecure Initiative loan. This loan will allow consumers who have fallen behind since their ARM loan adjusted upward. Consumers may be able to finance up to 6 months of delinquent payments into a new loan transaction, given they meet the other parameters of the loan program. To see if you qualify for the FHASecure loan, contact Michael R. Byrne at 1-800-999-2489 x7972 or mbyrne@gfhomeloans.com today.

High risk lenders also like to see an explanation of how you got your credit compromised in the first place, as well as a written explanation of why the current transaction will solve your financial crisis. Some high risk lenders also like to see that you have some money in reserves after the transaction closes as well.