Are you having paid or unpaid defaults? Chances can be – you’re a discharged bankrupt. So, how do you expect to get a home loan?
How would you feel if bad credit is all set to to stop you from buying your own home or invest in a property? Possibly, it would be a shattering feeling. Anyhow, how have you been keeping your financial commitments in order to get your home loan, with bad credit score?
You must be having some questions, for sure. Keep reading.
What do you understand by a bad credit?
Bad credit scores occur when you have negative listings in your credit file. The listing includes one, some or all of the following-
* Bankruptcy
* Frequent applying for a loan
* Late payments
* Previous credit rejections
* Unpaid bills
How can I qualify with a major bank? Am I eligible?
No other conditions are applied except for bad credit history consisting not more than a paid non-financial institution debt of less than $1,000. It can be a missed electricity, water or Telecom bill, anything less than the worth of $1000. If you comply with this condition, you can consider qualifying a major bank or a lender, with no additional requirements.
The second case arises when you are in a current strong financial position. In this case, you can get a bad credit home loan even if you have credit impairments like judgements, defaults, Part IX, bankruptcy, loan arrears etc. A strong financial position allows you to apply for a Bad Credit Home Loan.
Do I have options with non-conforming lenders who offer bad credit mortgage options?
Of course, there are lenders in the market, who can offer you bad credit mortgage options. If they do not, there are several lenders who can also help you improve your bad credit rating.
Where to apply to get a loan with bad credit score?
People with bad credit history end up with the option of ‘specialist lender’. A ‘specialist lender’, as we call them, lends a loan with interest rates between 2-4% higher than the normal interest rate available in the market. Do you want to repay at such high interest rates?
With major banks, you may be restricted to borrowing a maximum of 80% of the property value. For a fact, there are some lenders who consider lending up to 90% loan to value ratio. You can either try and fix your Credit Rating or apply for a bad credit home loan. There’s always a second chance awaiting.
