In a word, yes! Actually, contrary to conventional wisdom, it is fairly easy for a person with poor credit to get a home loan as long as they have – and can prove they have – a steady income that is enough to cover the loan payments. The real disadvantage to getting a mortgage loan with bad credit is that you will get a much higher interest rate and your monthly payments will be significantly more than would otherwise be the case. Poor credit home equity loans, as long as you have enough equity in your house to serve as collateral are even easier to get regardless of your credit rating.
Poor Credit Mortgage Loans
Believe it or not, most major mortgage lenders have programs specifically designed for applicants with poor credit. Surprisingly, you can still get a bad credit 2nd mortgage. Further, the market for these loans is quite competitive, so doing some shopping around is well worth the effort. It may be quicker and easier to go through a mortgage broker in this respect since will probably already be aware of at least some poor credit home loan programs and – since they do not get paid until you get a loan – they have a vested interest in helping you find one. The real key is to not just jump on the first mortgage loan that you may qualify for.
Once you have a found a lender with a program that is acceptable, it is worth taking the time improve your credit score as much as possible before applying. Many of these home loans for poor credit determine your interest rate and monthly payment based on your credit score, so even a minor improvement of a few points might end up saving you a lot money. Also be sure to submit – in writing – a detailed explanation of why your credit rating is poor. Despite the role played by scores and abstract calculations, your application will be reviewed by an actual human being at some point and having a good explanation for your poor credit may keep you from being declined.
Poor Credit Home Equity Loans
Assuming you have enough equity in your home to serve as total collateral for a loan, you should have no problem getting a loan regardless of your credit score. You will probably receive a higher interest rate and higher monthly payments, but as long as the loan is fully backed by home equity getting home loans with poor credit should be easy enough.
On the other hand, if you do not have enough equity to cover a loan then chances are you will not qualify for any sort of very poor credit home loans. You may be able to get a personal loan – based on having a steady income and showing that your current bad credit stems from a one time event – but it will have nothing to do with your home.
One of the best things that you can do is try to find a bad credit mortgage broker. They will have the knowledge to help you get the best loan possible given your situation.
If you need to learn how to improve your credit score, why not enroll in Credit Repair College? We will teach you everything you need to know to repair credit like a pro!
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