Bad Credit Mortgages

The USA property market has recently suffered from a significant and sustained drop in real estate values, and many residents have found their credit is not what they thought it was.  Late or unpaid bills, credit card debts or missed mortgage payments can all have a significant impact on your credit score. Unfortunately you only realise how important that credit score is when you’re looking to take out a new loan or refinance you mortgage loan and get a resounding “NO!” from your lender.  Once you know about your credit problem, it’s often too late to do anything about it. leaving you in a tough situation with very few options. 

Impacts of Bad Credit

 your Credit Score is one of the three main lending criteria a bank will look at when deciding whether to lend to you or not.  If you have bad credit (under 600 Credit Score as a general guide) it can impact on you in a wide range of ways.

Firstly your bank may not be willing to offer you a new loan, or in extreme cases may not offer to renew your mortgage!  This can leave you in a situation where you are forced to find alternate funding option from other sources, either that or face foreclosure on the property!

In more moderate cases, your bank may impose a requirement to have Private Mortgage Insurance (PMI) in place and you will not be able to get access to the most competitive interest rates.  You may also find that your refinancing options are restricted as fewer lenders will be inclined to offer refinance on your existing mortgage loan.  fortunately there are many lenders that are willing to offer mortgages for people with bad credit and also provide refinancing options, including options like cash out refinance if you have sufficient equity – a great way to pay down high interest debt.

The Value of Online Mortgage Quotes for people with bad credit

There are a large number of home Mortgage lenders out there, and each of them is subtly different in terms of lending criteria and processes.  Some are more flexible than others, but going from bank to bank is impractical, time consuming and often fruitless and frustrating.  This is where online Mortgage quotes really shine through.

Most of the best lenders offer an online quoting system and we have created a system which allows you to search these lenders quickly, easily and for free.  Enter your zipcode and you’ll immediately be taken to a list of local lenders offering free online quotes.  If you have bad credit this is the place to start.  Our simple tool is designed to cut right tot he chase and give you options.

Bad Credit Mortgages – How to get a mortgage with poor credit

Fortunately, if you have bad credit, there are still options for you.  While credit score is an important factor, many providers of  Mortgage quotes providers are willing to look past this if you have good equity and debt servicing ability.  They key is to find the right lender to approach.  If you have bad credit the best thing you can do is take some simple steps to improve your credit score and consolidate debt, and then shop around for a lender who will work well with you. 

Once you’ve taken a look at some of the options from your lenders you’ll know who to approach in real life – getting online quotes is quite simply the smartest thing you can possibly do.

If you are finding that your credit is so bad that you can’t get a loan through traditional Mortgage Lenders, you can look at Hard Money lenders.  Hard money lenders are mainly worried about Equity.  If you have enough equity in the security, they will lend to you.  Check out our Hard Money Lenders page for more information.  You can also take a look at this governement assistance website or the HUD.