How to Find a Mortgage Lender with Bad Credit
How to find a mortgage lender with bad credit? Getting a mortgage with bad credit can be quite a challenge.
While this was not a problem in the past, times have changed due to the housing market crash and the economic collapse that happened some years ago.
As a result, loans and mortgages are a lot harder to come by. Banks are more stringent with their checks and their requirements are a lot steeper than they used to be.
That being said, it is never impossible and there are a few steps you can take to try and get a mortgage with bad credit.
Methods On How To Find A Mortgage Lender With Bad Credit:
Typically, if you do not have enough income or have a bad credit history, a co signer will eliminate these concerns for the bank.
The co signer agrees that if you cannot keep up with payments, they will be responsible.
Another method that can be utilized is the sub prime mortgage. These are types of mortgages that have higher interest rates than regular mortgages.
Banks are more likely to give you a sub prime mortgage because of the high interest rate and high non payment penalties that are attached.
Just be sure that you can meet the conditions of this mortgage, as you do not want to fall into a pitfall of high interest and penalties.
Higher down payments can solve the problem on how to find a mortgage lender with bad credit. If you cannot get a lender to give you money on the pre existing conditions, simply suggest that you will pay more money off at the beginning.
Federal Housing Administration (FHA) insured loans are another way through which you can still buy a home if you have a poor credit rating. These loans are designed for low income individuals, but can also apply to those with bad credit.
At the end of the day, you will have to be creative with what you do. Getting a co signer is your best bet, but if you cannot manage that then look into the other options. Do not give up just because your initial request for a mortgage was turned down.
The good thing about applying for a home loan versus a credit card is that applying for a home loan does not continue to lower your credit score.
We have a lot of technology at our disposal today and one other thing that you may have overlooked is a simple internet search for lenders that help people with bad credit.
When you do your search try and be as specific as possible. Do not just type in “bad credit loan” type in something very specific like, “bad credit home loans” and you should find lenders that are looking for you.