Already on ArticleSlash?

Forgot your password? Sign Up

Are Bad Credit Mortgage Lenders the Ones to Blame?


Visitors: 119

Many who have less than perfect credit mistakenly believe that home ownership is out of their reach. However, there are bad credit mortgage lenders which can help. There are several avenues for such loans.

One route is to secure a cosigner. If you have someone who will be willing to cosign for your mortgage, then the lender will base their underwriting on the co-signer's credit as opposed to yours. Many use this technique to great success.

Another possibility is a new emerging trend of peer to peer mortgages. Several web sites exist which put together people who desire return on their money with others who require a loan. The risk is spread among many small lenders. You might pay a higher interest rate, but it is definitely a path worth investigating.

Some private social organizations have programs to assist with home ownership for those who qualify. Most typically, there are strict income limits. Credit score is not a large factor in reference to these loans. You should research which groups exist in your community and explore whether any of their programs are relevant to you.

The most common route for those with bad credit to secure a mortgage is through an FHA backed mortgage. FHA stands for the Federal Housing Administration. It is a government entity created to encourage home ownership among groups typically shut out of the process.

FHA backed loans do not have a minimum credit requirement. The only stipulations are that you do not have a bankruptcy within two years, nor a foreclosure within the past three years. Other than these requirements there are no other credit standards.

Another good facet of FHA backed loans is that the down payment requirement is much less. Typical loans require twenty percent down payment whereas FHA backed loans usually only require three percent.

If you have poor credit there is still an opportunity to buy a home. So don't just give up with the thinking that you are doomed from the start at reaching a decision. Lenders are human too and they have to understand that people need homes to live in as well. Bad credit mortgage lenders are there for those who know where to look. Do a little research and you might be pleasantly surprised. Many do not do this therefore suffer from the vision that they can never get a loan for their homes. Be smart and play right and you will have the loan you need.

We all look to have someone to blame but are bad credit mortgage loan lenders the ones to accuse? To get more, check out where you'll find this and much more.


Article Source:

Rate this Article: 
Compare Mortgage Lenders - How to Find the Top Mortgage Lender Around
Rated 4 / 5
based on 5 votes

Related Articles:

An Introduction to Bad Credit Mortgage Lenders

by: Davis Aceline (June 26, 2008) 
(Finance/Mortgage Refinance)

Working With Bad Credit Mortgage Lenders

by: Steven Walters (September 17, 2008) 
(Finance/Mortgage Refinance)

Mortgage Lenders For Bad Credit - Should You Call Them 'Dude'?

by: Rony Walker (July 02, 2007) 
(Finance/Mortgage Refinance)

Mortgage Lenders that Focus on Borrowers with Bad Credit

by: Shelby Ryan (January 14, 2007) 

Where To Find Poor Credit Home Mortgage Lenders

by: Alan Lim (June 07, 2007) 

Private Commercial Mortgage Lenders Thrive Amid Credit Crunch - Where to Turn ..

by: Glenn Fydenkevez (July 10, 2008) 
(Finance/Mortgage Refinance)

Are Atlanta Home Mortgage Lenders And Brokers Being Squeezed Out Of The ..

by: Aubrey Clark (March 23, 2008) 
(Finance/Mortgage Refinance)

Comparison Shopping Mortgage Lenders When Mortgage Refinancing

by: Louie Latour (July 29, 2007) 
(Finance/Mortgage Refinance)

Jumbo Reverse Mortgage UK Affordability Mortgage Lenders

by: David Johanson (August 06, 2007) 
(Finance/Mortgage Refinance)

Compare Mortgage Lenders - How to Find the Top Mortgage Lender Around

by: William Perry (October 19, 2008) 
(Finance/Mortgage Refinance)