The mortgage market is much more diverse than some borrowers think.
Besides the standard fixed-rate and adjustable-rate mortgages, there are other types of mortgages and ways to finance a home.
Pro: Opportunity to buy larger, more expensive home.
Con: Pay a higher interest rate in exchange for the lender's higher risk.
Pro: Opportunity for damaged-credit borrowers to buy homes and to establish better credit.
Con: If your credit does not improve, you could be stuck in a high-rate loan for much longer than two or three years.
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A bunch of agencies are trying to expand the number of would-be homeowners who can qualify for mortgages. But I'm skeptical that these efforts will help many people.
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