Bad Credit Home Mortgage Lenders For California, Florida and Texas

:: Bad Credit Lenders for Poor Credit & Subprime Loans

Why You Would Need a Bad Credit Lender

Individuals with poor credit, low FICO scores or little to no assets and/or equity may find it difficut, if not impossible, to obtain a poor credit loan from a bank or other financial institution. If you do not qualify for an A paper, B paper or C paper loan, you move into what is called the subprime category. Subprime mortgage loans are still executed through a financial institution, although the percentage rate on a subprime loan will be higher than if you had perfect credit and substantial income or equity. For borrowers who do not qualify for a subprime loan, the final lending option is a private loan.

Get Up to 4 Competing Quotes From Top Lenders In Two Simple Steps. Free Quotes. NO SSN# Required. No Credit Check. Bad Credit OK. No Obligation. What type of loan are you looking for? Mortgage Refinance Home Equity Debt Consolidation New Home Loan What is the property type? In what state is the property in question located? Single Family Residence Multi Family Residence Condominium Mobile Home Manufactured Home - Select One - Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming How would you rate your credit? Excellent Good Fair Poor

Bad Credit Lender Rates

A private loan, also referred to as a hard money loan or a bad credit loan, is made by a private individual or fund, as opposed to a bank. Because a private individual or fund is not FDIC insured, there is a greater risk involved for the lender. In addition, the borrower has a shakier track record with paying back their financial obligations and/or has less economic resources available to them and, therefore, carries a greater risk on defaulting on the loan. For these reasons, a hard money or bad credit lender charges a higher annual percentage rate and up front points. Bad credit lenders charge anywhere from 11%-16% plus 2 to 6 points. Lending amounts will vary by lender and by state.

The Benefits of Using a Bad Credit Lender

Borrowers should only apply for a bad credit loan after they have unsuccessfully applied for a financial loan from several financial institutions. Due to the high percent rate of a bad credit loan, borrowers should structure their hard money loans so that they do not exceed 12 to 18 months. The goal for a borrower in this situation is to rebuild their credit during this time (borrowers are not penalized by credit bureaus if they miss payments etc. on a bad credit loan because their loan is not recorded through a bank or other financial institution). With diligence and work, hopefully the borrower can now refinance their loan and obtain a subprime loan. This way, the borrower is on their way to reestablishing their financial future.