Bad Credit Loans Are Available

Home Loans

Bad Credit Loans Are Available
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By Glenn Reschke

Believe it or not, finding home mortgage loans are a reality for people with bad credit. Basically, bad credit mortgage loans are offered by subprime lenders who specialize in loans for those with challenged credit. Essentially, hard money loans and bad credit mortgage loans are reserved for borrowers with poor to bad credit.

There are basically two types of loans in the context of traditional home buying: A-paper loans and subprime loans. A-paper loans go to those who have good credit — as defined by the lender in question.

What is an A-paper loan for one lender may be a good loan risk but not worthy of A-paper. For example, with one lender a 660 middle FICO score qualifies as an A-paper loan. However, with another lender, the 700 middle FICO score is the cut off point. The point here is that each lender is different. Nevertheless, there are general guidelines for major lenders when it comes to the grading of a client’s credit score.

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The subprime loan is for those who have bad or average credit. There are shades of gray here, however. In truth, bad credit mortgage loans are specifically designed mortgage loans for people afflicting from a bad credit history. While rates may be higher than those with solid credit histories, bad credit mortgage loans are still available at historically low rates. They’re available, believe me. There are numerous companies that cater exclusively to this clientele. Even major lenders like Wells Fargo, Chase Manhattan, and others have established subprime division to have options for those customers who don’t have good credit.

To be clear, subprime mortgage loans are offered to individuals with low credit scores. Even interest only home loans subprime loans California are available. (Interest-only home loans — even subprime loans are also available — but I don

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This entry was posted on Thursday, November 30th, 2006 at 3:30 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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