Varying Degrees Of Bad Credit Mortgage Financing
“Bad Credit Mortgage Financing Can Still Depend On Your Credit Profile”
Just because someone with equity in a real estate property, but also has bad credit, does not automatically mean that a private mortgage lender or subprime institutional lender will provide then with a bad credit mortgage.
There are varying degrees of bad credit which are taken into account by private mortgage lenders.
More specifically, for most private lenders, your bad credit status for them is all about the back story that explains how you’re credit got into a distressed state in the first place.
For instance, unexpected life events can occur that can impact your credit over a period of time such as divorce, job loss, family health, and so on. Even bankruptcy has a back story that a lender may be interested in hearing.
The key here is that most private lenders don’t mind financing people with bad credit, provided that the bad credit is not in a habitual state of irresponsible credit management.
If you have a low credit score due to a certain set of circumstances, but are now working your way out of the problem and are in the process of improving your credit score or have improved over the last number of months or years, then a bad credit loan is likely going to be readily available to you provided that there is sufficient equity in the property to cover off the requested amount of financing.
On the flip side, if you have had bad credit for a long period of time and your credit profile shows no signs that things are improving, or you’re doing a better job of managing your credit responsibilities, then its likely going to be harder to find a private lender interested in funding your deal.
This is not to say that you can’t get a private mortgage with really bad credit. But what it does say is that there are going to be fewer lenders that will be interested in considering your request, the loan to value amount offered will be lower than average, and the rates higher. And if there are any repayment issues, the private mortgage lender will be more inclined to acquire swiftly to collect the money due and take whatever legal means are available to them to reclaim the amount outstanding.
If you’re in need of a bad credit mortgage, or want to know more about what types of private mortgage options are available to you, I suggest that you give me a call so I can quickly assess your requirements and provide some bad credit mortgage options for your immediate consideration.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel