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Bad Credit Mortgage Lenders – Find a Bad Credit Home Loan

Finding a bad credit mortgage lender is easier than you probably think.

Although several lenders and brokers advertise super low rates and

different types of home loans for people with good credit, a variety of bad

credit loans are available. It is possible to get approved for a home

loan with a score as low as 500. Here are a few tips on how to find a

bad credit mortgage lender.

Request Mortgage Information from Credit Unions, Banks, etc.

Even though a large number of banks, credit unions, and other lenders

do not offer home loans to people with poor credit, it doesn’t hurt to

inquire about their loan requirements. Some lenders have started

offering a variety of mortgages, including low credit score home loans. This

makes homeownership attainable. Because many traditional lenders favor

prime borrowers, you may not meet some lender’s requirements.

Apply for a Loan with a Sub Prime Mortgage Lender

If unable to get approved for a mortgage loan with a traditional

lender, consult a sub prime mortgage lender and request a mortgage quote.

These lenders are very helpful because they work with a variety of credit

situations. If acquiring a sub prime loan, good credit is not

necessary.

Although sub prime lenders can get homebuyers with poor credit

approved, there are drawbacks to these loans. For starters, bad credit will not

qualify you for prime rates. Hence, a bad credit mortgage loan will

consist of interest rates about two or three percentage points above the

current average. An interest rate increase usually entails paying a

higher mortgage payment.

Using Mortgage Brokers

There are numerous lenders offering sub prime mortgage loans. Prior to

applying, all homebuyers should shop around and obtain several quotes.

Comparing different mortgage lenders and loans is essential to

obtaining the best home loan. Shady bad credit lenders prey on those with few

options. However, having a low credit score does not mean you have to

accept a home loan with outrageous fees and terms.

To avoid being deceived by a dishonest mortgage lender, use an online

broker and obtain multiple quotes from reputable lenders.


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