Hard Money Mortgage Loans for Bad Credit
Sunday, December 21st, 2008A bad credit score often leads to a mortgage lender denial of credit. So, if you have poor credit, and your fico scores are too low to qualify for FHA or non prime mortgages, you’ll need to find a lender that works with hard money.
The approval process for bad credit mortgages is a lot simpler than that of other home loans. The lender considers the property being used as collateral to determine whether it holds sufficient value for the investor/lender to be willing to take the risk of granting the loan. Most hard money lenders require the LTV to be less than 65%. The borrower’s current financial status and future potential is reviewed to calculate the debt to income ratio. And, because we recommend hard money loans only for a short-term solution of 6-18 months, so make sure there is no pre-payment penalty.
Many people in California are using Hard money mortgage loans for foreclosure bailout loans. But, they are not a good idea for mortgage refinancing unless you’re refinancing to help for foreclosure prevention. If possible, try to work out your financial issues with your creditors before trying for home refinance loans or home equity debt consolidation loans. Once you get to the point where your scores are high enough for a sub-prime loan (typically 540-619), then secured debt consolidation loans for consolidating revolving debt to pay off credit card debt will lower your payments and save money.
