What Is Bad Credit Mortgage Loan

What Is Bad Credit Mortgage Loan



What is​ Bad Credit Mortgage LOan??
If you​ wish to​ purchase a​ new home or​ refinance your existing mortgage to​ get cash-out,​ but are worried as​ to​ whether or​ not you​ will qualify for a​ loan due to​ a​ poor credit history,​ do not despair...bad credit mortgage loans are available for people just like you.
Bad credit mortgage loans also known as​ sub-prime home loans are offered by select lenders who specialize in​ these type of​ mortgage loan programs .​
These lenders do not follow the​ same hard core guidelines as​ traditional banks and credit unions .​
Their guidelines allow for credit mishaps that are considered taboo with traditional home loan lenders .​
What this means for you,​ the​ borrower,​ is​ that when you​ apply for your home loan with a​ sub-prime mortgage lender you​ have a​ great chance of​ receiving loan approval despite the​ fact that you​ have a​ less than stellar credit history.
Bad credit mortgage loan lenders are actively seeking out people with credit problems and they have buckets of​ money to​ lend! Sub-prime mortgage loan programs are available for people who have the​ following type of​ derogatory items in​ their credit history: bankruptcy,​ foreclosure,​ judgments,​ late payments and collection accounts.
Depending on​ the​ severity of​ your credit problems,​ you​ more than likely will have to​ pay a​ higher interest rate with a​ bad credit sub-prime mortgage as​ opposed to​ a​ traditional conventional loan .​
Many people with bad credit obtain a​ bad credit mortgage loan and use this as​ a​ stepping stone to​ rebuilding their credit history .​
Then,​ after 2 - 3 years,​ once they have cleaned up and re-established their credit,​ they refinance to​ a​ lower rate conventional loan.
Not all lenders offer bad credit mortgage loans .​
Make sure the​ lender you​ are considering offers sub-prime mortgages before applying with them .​
You will save yourself time and keep unnecessary inquiries off of​ your credit report.




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