Home  >>  Write  >>  Real Estate  >>  The Truth About Mortgages  >>  Bad Credit Mortgages


Bad Credit Mortgages: Don't let bad credit stop you from buying a home for sale!

Jack and Jenny had been planning to buy a home for months and had saved a substantial amount of money for a down payment. Being responsible, Jack and Jenny worked very hard to save money when their son, Tom, unexpectedly had to go to the hospital for surgery. Now faced with an unexpected medical bill, Jack and Jenny weren’t sure of what to do. They went to a home mortgage lender to see if they could obtain a mortgage to buy a home but after paying off Tom’s medical bills, they were deemed as having too bad of a credit history to obtain a loan. As a result, Jack and Jenny weren’t able to live out their real estate dreams. Well that was then and this is now.
As the real estate market continues to grow, many home mortgage lenders are now offering bad credit mortgages. The reason for this rise in bad credit mortgages is the understanding that the vast majority of people applying for home loans understand the importance of a real estate investment. As Real Estate Investing has grown in recent years, home mortgage lenders are willing to take the risks of offering bad credit mortgages. Whether it’s due to medical bills, home repairs, or an emergency, many people in the country find themselves with a bad credit history.
However, this should not deter you from your dream of buying a home for sale. Whether it’s impaired credit, BCD, damaged credit, subprime credit, impaired credit, or a blemished credit history, home mortgage lenders are willing to help you out. It is important for the potential borrower to understand that just because they have bad credit, it doesn’t mean that they should accept just any bad credit mortgage. After all, it isn’t in your interests or the home mortgage lender’s interest to provide you with a bad credit mortgage that you may not be able to pay back. A home foreclosure is the last thing that either parties want in this transaction, so you have to be realistic when looking at mortgage rates. If you feel that you will be able to meet the financial requirements of mortgage payments, then you may be in line for a bad credit mortgage.
There are different types of mortgages available to you. The key is determining whether you prefer the stability of paying set mortgage payments in a bad credit fixed rate mortgage or if you are willing to pay off fluctuating mortgage payments in a bad credit adjustable rate mortgage. By looking at current mortgage rates and through some sound planning, you will be able to make a great real estate investment without letting bad credit stand in your way!