Bad Credit Mortgage

Category: Entertainment

Presentation Description

Not everyone enjoy a good credit standing to benefit from prime housing loans. But no matter how your FICO score stands, no one should be deprived to get a mortgage loan. You can still get what is called a bad credit mortgage with some conditions the borrower will have to live with.


Presentation Transcript

Slide 2: 

Many mortgage companies are reluctant to finance people with bad credit or no money to put down. In this case a bad credit mortgage lender helps people who have bad credit score, low income, etc.

Slide 3: 

Means borrower get what is called a bad credit mortgage with some conditions he will have to live with. And pay huge price to get a bad credit loan.

Slide 4: If you are suffering from bad credit mortgage loans and are interested in getting a home mortgage loan, you have to take into account the FICO credit scoring system.

Slide 5: 

It is worth mentioning in this regard that FICO is one of the reputed credit reporting agency that lenders opt for when they evaluate the loan application of the borrower. In other words, if your credit record is not up to the mark, lender will know it straightaway with the help of FICO. FICO stands for Fair ISAAC & Company

Slide 6: 

If your FICO score is high then there is a strong possibility that your home mortgage loan will be approved.

What is Bad Credit Mortgage : 

What is Bad Credit Mortgage Bad credit mortgage falls under the category of sub-prime lending called subprime mortgages, means lending at high risk to consumers with bad credit.

Slide 8: 

Subprime lenders employ various methods to cover their lending exposures but the most common is with interest rates higher than prime lending rates. Getting sub prime loans can also be slapped higher loan processing, pre-payment penalties and service fees which lenders use to cover the cost of servicing and collecting defaulted loans. Late payment fees are also higher.

Getting a subprime mortgage : 

Getting a subprime mortgage In general, it isn’t that difficult to secure a bad credit mortgage. Once you accept the fact that subprime loans incur higher interest rates and other restrictive penalty charges. Just like any lender, there are those that charge more than others.

Slide 10: 

Here are some things you can do if you have a bad credit but need a mortgage. You can always wait for your FICO score to improve and get a mortgage at prime rates that are significantly lower than subprime rates. You could get any of those subprime credit cards but if used wisely, with no late payments and defaults, can get your FICO score to go up. It is often a matter of doing some math on whether the savings in interest rate is worth the wait.

Slide 11: 

If you simply have to get a bad credit mortgage, see if you can find one without a pre-payment penalty. This is often 6 months up to 3 years during which time, you’d be paying substantial interest payments before you even begin paying off the loan.

Slide 12: 

Shopping around for the right bad credit mortgage lender means getting one with the shortest possible pre-payment period. In general, the shorter the term payment, the shorter the pre-payment period so you can pay off the loan without incurring the penalties.

Need Help Modifying Your Mortgage Loans? : 

Need Help Modifying Your Mortgage Loans? You can always wait a while, improve your credit score and then get a loan at a low rate of interest. Some bad credit mortgage loans carry a pre-payment penalty, so make sure your loan doesn't have one. These bad credit mortgage loans have 6 months to 2-3 years pre-payment penalty. This means you have to pay huge sums of interest for at least 6 months before you can pay off the loan. If there is a pre-payment penalty you should take the loan that has the shortest term so that you can pay off the loan quickly without paying any penalty.

Thank You : 

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