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Given the mortgage industry meltdown a few years ago, sub-prime mortgages are harder to find. Consumers who have bad credit have established a history of poor financial management and spotty payment history as regards obligations. This lack of education and knowledge is what led millions of homebuyers to get into adjustable rate mortgages that they were unable to pay after the rates were adjusted--these customers simply were unaware of what they were dealing with. To this end, it has become more difficult to get a mortgage with bad credit. Your best bet is to speak to a real estate professional who can advise you as to the climate in your area regarding sub-prime mortgages.
What else can I help you with?
What are the disadvantages of bad credit mortgages?
Bad credit mortgages will likely have a higher than usual interest rate. They may also have stricter policies and penalties for late and partial payments.
What is the main reason for bad credit mortgages?
Bad Credit mortgages are for people who do not qualify for traditional mortgages. These tipically have shorter terms with higher interest rates.
Are the rates for a bad credit home loan substantially higher than if my credit was good?
The better rates for borrowing in general are extended to consumers who have better credit. A bad credit home loan does not necessarily carry an excessively high rate of interest because those loans are government funded, and the government is not known for fiscal responsibility. In a discussion of "bad credit" mortgages, the issue is not about the rate of interest but about the ability to pay, In the majority of "bad credit" mortgages, foreclosure is nearly inevitable.
How is buying a home with bad credit possible?
Most financial institutions will not finance a home if one has issues with bad credit. There are bad credit mortgages which some banks offer to individuals. The interest rate on these loans can be very high, often tripled that of regular interest rates.
What are some mortgage companies for people with bad credit?
Some mortgage companies for people with bad credit are "GE Money" and "Precise Mortgages". The interest rate for both these companies varies from 4,24% to 4,84%.
Does bad credit lead to problems with mortgages?
Bad credit can lead to problems with mortgages because a low credit score could affect your annual interest rate for a loan and cause it to become higher. It could also affect your monthly payment because bad credit will put restrictions on the down payment amount which will consequently raise your monthly payment and inevitably lead to problems with mortgages.
What is the interest rate on loan?
Interest rates are based solely on the severity of your credit. Good credit = low interest rate. Bad credit = higher interest rate.
How are second mortgages obtained when one has bad credit?
It is possible to obtain a second mortgage from most lenders. However it is likely that the interest rate will be higher and a larger deposit will be required for those people with a bad credit history.
Where can you find information on credit repair mortgages?
Information on credit repair or bad credit mortgages can be found through many financial institutions or mortgage brokers. These types of loans often carry a higher interest rate, however it enables an individual to pay off their debt and correct their credit rating.
Where can someone with bad credit get mortgages?
Someone with bad credit can apply for mortgages through the FHA program. These mortgages are backed up by the FHA and are a good choice for someone who has bad credit.
Can someone with bad credit still obtain mortgages in the UK?
Someone with bad credit can still obtain mortgages in the UK. Some of the companies that offer mortgages for people with bad credit are Alexander Hall and ASAP Mortgages.
What creditors offer mortgages or refinanced mortgages to individuals with bad credit in the UK?
Some companies that offer mortgages to individuals with bad credit in the UK include GE Money, Precise Mortgages, and Saffron Building Society. These companies offer a variable 24 month mortgage with an interest of around 4.50%.
