First, if you are trying to buy a home you have a couple of options to get your mortgage with bad credit. You can either save up about $20 - $30,000 to put down on a home between $60 - $80,000. The large down payment will make it easier for a mortgage company to be willing to loan you the money you need.
Your other option is a land contract. This can be a 1 year, 3 year, or 5 year contract between you and the current owner of the home. You will pay them a monthly payment, which goes towards the balance of the home. This will allow you to be able to refinance your land contract when it is up so that you can get a mortgage without a down payment.
If you are trying to refinance and you have bad credit, then your options are limited. You will need to get a few quotes from non conventional lenders since you have bad credit. Avoid your bank because they will not be able to do anything for you. The non conventional lenders will have a program for bad credit and you will probably qualify for it.
There are still options for home loans for bad credit, but you just have to know where to look and what to accept. Your rate is going to be higher because of your credit and your LTV will be lower. This does not mean you cannot get the loan you need. It just means you are a bit riskier for the lender.
Do you need a loan and you have bad credit? It doesn't matter what the reason for the loan is, you will be approved! Go to:
Author: BENJAMIN EHINGER
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