Bad Credit Lender Loan Mortgage
Bad credit lender loan mortgage is a form of home financing available for people with poor credit. When the bottom fell out of the banking industry, lenders imposed new mortgage lending guidelines. In addition to requiring a high FICO score and solid employment record, borrowers must also have a substantial down payment before qualifying for a home loan today.
Obtaining a bad credit lender loan mortgage is not the same as subprime loans. However, bad credit loans cost more to obtain. Borrowers with low credit scores are viewed as high-risk; meaning there is a good possibility they will default on their mortgage note.
Bad credit lenders charge higher interest rates than banks or mortgage lenders. There are two important factors to realize. One, interest rates are currently at an all-time low so even using bad credit lenders should still yield an affordable payment. Secondly, you can repair and build your credit by consistently paying your mortgage payment on time each month.
Once you raise your FICO score and demonstrate credit-worthiness, you can refinance your loan through a traditional mortgage lender at a later date. This allows you to purchase a home at today's prices and take advantage of lower housing prices.
It is important to conduct research to determine which bad credit lenders are reputable and which to avoid. If you plan to buy a house, spend as much time researching lenders as you do locating the perfect home. Otherwise, you could end up becoming a foreclosure victim.
If you are facing foreclosure now, consider refinancing your home through a bad credit lender. Again, careful consideration should be taken before signing on the dotted line. There are many unscrupulous people preying on desperate homeowners who want to stop foreclosure. Some require homeowners to sign over the deed to their home. This is usually not a good idea and should be discussed at length with a real estate lawyer.
Take time to investigate all home buying options. You might find a seller willing to engage in seller carry back financing or lease-to-own option. When property owners carry the financing, they must adhere to their states' usury laws which limit the amount of interest charged.
Private sellers are required to charge lower interest rates than lending institutions. Buyers can purchase homes using seller carry back financing and obtain lower interest rates; thus, lowering their monthly payment.
A variety of financing options are available for home buyers with poor credit or low income. I encourage you to spend time reading through my real estate opportunities and mortgage lender article library to discover all options available.
Tagged: Bad Credit Lender Loan Mortgage, Buy a House, Credit, Interest Rates, Mortgage Lender Article Library, Mortgage Note, Real Estate Finance, Real Estate Lawyer, Seller Carry Back, Stop Foreclosure, Usury Laws
Published on April 24, 2009 at 02:50 AM
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