What Are Bad Credit Mortgage Loans?
There are lenders out there who give what are referred to as bad credit mortgage loans, if
you are experiencing financial problems, a situation that is common to many people
everywhere. Possibly you recently just got divorced, lost your business, had large
medical bills, or maybe you have had too many credit cards and now the balances are out
of control. In all likelihood, things like this may have caused your credit rating and FICO
score to drop. Sometimes setbacks happen in life, but there is hope if you still must get a
mortgage to buy a home or for other reasons.
There are a number of reasons which contribute to poor credit, damaged credit or bad
credit, all of them with almost the same effect as having no credit at all. When a credit
check reveals a low score or a questionable credit history, it is more likely that lenders
will reject your home mortgage application. So, if you cannot qualify for a regular home
mortgage, bad credit mortgage loans come into play to rescue you.
There are many lenders and brokers willing to help people who want to refinance or
apply for a home mortgage but do not qualify because of a poor credit history. These
loans are usually more costly than regular home mortgages but you can switch to a better
option when your credit and finances improve.
Buying a home involves a large disbursement so before you apply try to repair your
credit first as much as you can. Although, there are companies which specialize in
helping you out in this matter, never trust in organizations that promise to erase your bad
credit, or create a new credit identity for you. Self help is your best aid for fixing your
finances and your credit history and it is not that hard to achieve. Bad credit mortgage
loans are available for those people whose credit (FICO) score is less than 650, although
most banks or financial institutions will let you know that you need a sub-prime loan.
Due to the nature of their offer, most lenders are open to w