Basics of a Bad Credit
Mortgage
A bad credit mortgage is
available for borrowers who may have trouble getting a mortgage because
the loan does not fit the standard lender guidelines. Lenders who make
bad credit mortgages allow for conditions, such as, low credit scores,
excessive debt, collections, or a bankruptcy. A bad credit mortgage can
provide you with a streamlined lending process with minimum credit
requirements.
The major points of a bad credit
mortgage compared to a conventional loan include: The traditional loan
documentation to qualify are not required. Lenders will not turn you
down for having too much debt. Bad credit mortgages have flexible
guidelines that allow late payments, collections, and other credit
problems, even if you have had a bankruptcy or foreclosure. Lenders
compensate for a bad credit mortgage with a somewhat higher rate and a
lower loan to value than a conventional loan. |