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Bad credit mortgageJust because you have a blemish on your credit does not mean that you can not get a home loan. There are many options available, and sometimes all it takes is a proper structuring of the transaction. For general criteria of how a lender looks at you, view bad credit info. Let's discuss how you can decide what is the right choice for you.When do I need a bad credit mortgage?Lenders primarily use your credit score as a determination on whether to make a bad credit home loan. If your middle credit score is 620 or higher, you have good credit. If your credit score is below 620, you will need a bad credit mortgage. Each lender has their own underwriting guidelines. Lender guidelines for bad credit mortgages are more relaxed. Don't know what your Credit Score is? Click here.Bad credit mortgage typesBankruptcyIt is possible to apply for a bad credit mortgage one day after the bankruptcy has been discharged. Bad credit mortgage lenders will often consider the bankruptcy seasoning from the day the bankruptcy was initiated, not discharged. This could give you 2 years or more of bankruptcy seasoning. Chapter 13 bankruptcies can often be paid off with a bad credit mortgage refinance. You may save years of bankruptcy payments by paying off your chapter 13 bankruptcy balance with a bad credit mortgage.Foreclosure bailoutsSome bad credit mortgage lenders specialize in foreclosure bailouts. If your home has equity, meaning that the balance of the current mortgage is 65% or less than what the home is worth, they will refinance your existing loan to halt the foreclosure. These kind of lenders are called hard equity lenders. They don't check your credit, they don't ask questions about your employment, they don't ask what your income is and they don't care that you are behind and in foreclosure on your current mortgage. In return, these mortgage carry a very high interest rate. Expect a rate in the teens. Need a foreclosurebailout? Click this link for a bad credit mortgage application.My credit score is very low. What are my options?If your score is between 550 and 579, you would need to have the seller carry a second mortgage of 10%, or you need to put down 10%. If you have 10% cash to put down, then or course there is no problem. Finding a seller that is willing to take back a 10% bad credit second mortgage can be a challenge. You would need a real estate agent to assist you with this because it will come down to proper negotiation, and knowing where to look. Your most likely candidate will be a real estate investor that understands creative financing that is willing to accommodate you.Alternatively, you may consider doing a rent to own home. The reason to do a rent to own home is so that you can live in the home you want right now while you are working on improving your credit, and that you are not throwing all the rent money down the drain since you will be getting a rent credit. The downside of course is that you are betting that your credit will be good enough before the lease expires. What will my mortgage rate be?Expect your rate to be fairly high. There are limits to how high the rates can go, and lenders are strictly monitored for compliance. From their perspective they are taking a higher risk, and compensate for that by increasing the rate. Of course your rates with a 600 score will be lower than it will be with a 550 score. Get a bad credit home loan quote from our lenders for free to determine what you can do and will get. Click the banner below for further bad credit home loan information.My credit score is below 500. What can I do?You need to do two things: add good credit items to your report, and get the bad credit items off. To add good credit items to your report, you need to establish new credit, and pay it on time. This is a little easier said than done because nobody wants to extend credit to you. There is however an alternative that works very well. It is called a prepaid credit card. They do not do credit checks, they don't care if you are unemployed, your credit does not matter, in short, you are approved.The reason why they do this is because it is a prepaid card. For example, you pay them $300 which they keep on deposit, and in turn they will issue you a credit card with a $300 limit. When you pay on time, they will report it to the credit agencies and your credit will improve over time. Use it every month, but also pay it in full on the first of the month for maximum benefit. To sign up for a pre-approved, prepaid credit card, Click Here to Apply Now! Step Two: Remove the bad credit items. Once you have bad credit, it is amazing how many mistakes the credit agencies make. Double entries of the same item occur, and items that are not yours get on there as well. If you have a common name, other people's bad credit can attach to your report. Carefully review your credit report for inaccuracies. If you find items that don't belong there, you need to request an investigation with the agencies. Don't know what your Credit Score is? Click here. This will take care of the obvious items. You will be left with valid items on your report that will drag your score down. At this point, you will need professional help to try and get them removed. Using a reputable credit repair company that understands the fair credit reporting act, they can work with you and the agencies to attempt to remove delinquent items. This can be very successful. It will take a little time, but it is well worth the effort. A reputable credit repair company can be found by clicking here.
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