Bascis Behind A California Bad Credit Loan
A California bad credit loan is often a last resort for borrowers who can't get stadard loans because of past credit problems, foreclosure, etc. Hard money loans are difficult to place bad credit loans, hard money loans, subprime and bridge loans. Homeowners who don't face these borrowing challenges should not consider these types of loans as they come with high loan rates and often upfront points.
Most California bad credit loans require at least 25% equity in a property, while many lenders strongly prefer 35% equity to make a loan on a property to a hard money borrower. Lenders who specialize in California bad credit loans also prefer a 1st position loan and will not consider second position loans, also known as California home equity lines of credit.
More On A California Bad Credit Loan
For borrowers with past credit problems due to damaged or bad credit (and typically a lower than normal FICO score), it is often necessary to get California hard money loans. California loans to individuals with past, recent, or current credit issues so they can rebuild their credit and eventually refinance to a more traditional type loan. Many California bad credit lenders work exclusively with borrowers who have sub par or bad credit in order to find the best loan for their situation. Ideally, California bad credit loans will be made for between 12 and 36 months -- during which time homeowners can repair their bad credit. Once the bad credit and FICO score has been raised, the borrower can transition into a subprime or conforming mortgage loan.
Who Is Elgible For A California Bad Credit Loan?
To find out whether you qualify for a California bad credit loan, you should contact several bad credit lenders and go over your financial situation. Once you submit the application, one of their loan specialists will then turn to the task of deciding whether you are a good risk to qualify for this type of loan.
Hard Money Bridge Loans