Question:

I need a mortgage lender for people with bad credit – how do I find one?

Answer:

A mortgage lender for people with bad credit - you are talking about subprime lenders and loans. It is useful to know that bad credit home loans and lenders is easier to find nowadays than ever before, due to the expansion of the Internet and the availability of credit repair services one can get for a small charge.

Before approaching a subprime mortgage lender for a bad credit home loan people should make some attempts to avoid taking out a more expensive loan than they actually need.

How to avoid going to a mortgage lender for a bad credit home loan?

Look for government owned properties. Often, a HUD or VA foreclosure home can be obtained at a much better price than similar properties.

You could try to get 80/20 financing to avoid having the first mortgage lender charge you excessively for 100% LTV loan.

Getting down payment assistance is also a nice approach for a bad credit loan. Your loan LTV will be reduced and the lender will qualify you for better rates.

Try FHA and VA financing. FHA have been aiming to resume their positions as a mortgage cornerstone for low and average income households and may be a good place to start looking for a mortgage loan. In fact, FHA have been currently trying to help bad credit people stuck with subprime financing and have particular products, targeting lower credit homebuyers. As for VA loans, there are many Americans who are eligible for VA loan benefits, but have not taken advantage of that fact.

Recommended helpful present and future homeowners links:
Why: Get better interest rates. See how lenders see your FICO score.
Link: Start FICO® Quarterly Monitoring
Why: Find bank foreclosures, HUD homes, VA homes in your area.
Link: Search homes from $10,000 free with trail
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage