Bad Credit Home Loans or a Bad
Credit Personal Loan |
By Corey Senn |
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Bad Credit Home Loans are ideal for individuals who have had credit
problems in the past, but that need a loan for a new home
purchase, mortgage refinance, debt consolidation loan or a home
equity loan. If you do not qualify for a bank loan or a subprime
loan, you may still qualify for a private loan -- also known as
a hard money loan or bad credit loan. Typically, you will need
at least 25% equity in a property to use as collateral in order
to qualify for a bad credit home loan. Your real estate
collateral allows a private lender to feel less risk about
making a bad credit home loan with your low fico score and/or
bad credit. Without this equity, hard money lenders will not
take on this loan because of the risk that the borrower will
default on the loan.
Bad credit home loans are a good fit
for anyone who has income and equity to secure a loan, but not
the credit score to convince a bank to give them a loan. For
these people, you may need to go with a private bad credit home
loan lender for a 12 to 18 months period. The goal for any
borrower at the end of this period should be to move into a
subprime or conforming loan.
Bad Credit Personal Loans
vary only slightly from bad credit home loans. A bad credit
personal loan is typically $50,000 or less and is used by an
individual to help pay off credit card debt, home equity lines
of credit or any number of additional financial encumbrances.
Bad credit lenders will require collateral for a bad credit
personal loan ?either real estate or other liquid assets. The
loan rate and terms for a bad credit personal loan will vary and
you should allows speak with a bad credit lender to learn about
their programs and rates. |
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