California & Florida Bad Credit Home Mortgage & Equity Loan Lender

Bad Credit Mortgage Loans

Did you know that you can use home equity for just about anything? Home repairs, remodeling, automobile purchases (new car, old cars), vacations, paying back owed income taxes, Christmas and holiday spending, paying off debts, consolidate bills and other bad debts, among many others. Think about how low mortgage rates are right now, and how much you can save by borrowing a home equity line of credit at those rates. Compare that to how much interest you will pay on your typical credit cards. See what we mean? Big savings can be had by using your home's equity. Remember though, that home equidy is a secured loan. If you default, your home can be at risk of foreclosure and reposession. So make sure you are capable of making all your payments, on time, and you can't lose.

If you have poor credit, you have likely found it difficult to obtain credit. Financing a home, consolidating bad debt and high interest credit cards, paying income taxes, are just a few of the frustrating obstacles many folks face on a day to day basis. We have tried to make it easy to find the loan you need. Here are just a few loan options we want to mention:

Payday Loans - Unsecured Personal Loans - These are loans that are granted just with your signature. With payday loans, there is typically no credit check. You simply write a post-dated personal check for upto $1500, and you are given cash on the spot. The check is deposited on your next pay day. These loans are very convenient if you need cash fast for everyday expenses, bills, small purchases, travel, or emergencies, but you must be careful to not fall in the trap of living paycheck to paycheck on these paydayloans. They typically come with very high fees and will cost you more in the long run.

Signature Loans - Normally available to people with good credit. No collateral is required and the loan is secured only by your signature. We do work with a lender who tends to give loans to people with less than perfect credit more frequently than other lenders. The bank is HFC, and they have been around for 125 years. Their average customer is between the ages of 35-44 and has a FICO score of 640. We would invite you to check out their program if you are seeking a bad credit loan.

Bad Credit Mortgage & Home Refinancing - As we discuss below, if you have bad credit, you can obtain a home loan. You may have to prove a bit more, and put a bit more money down, but there is hope. We work with LowerMyBills who specializes consumers in locating bad credit loans and mortgages. You can also find refinance options and home equity loans even if you have less than perfect credit. (At this time, we do not work with mobile home (manufactured) home lenders. But we are working to bring them to DirectLendingSolutions.)

Auto Loans - Auto loans and auto refinancing are available to you, and you may not know it. This day in age, it seems that everyone has some sort of credit blemish. Now, car dealers and lenders are trying to make it easier to get financing for you. They will typically charge a higher interest rate than people who have good credit, but people who have bad credit histories can still get the financing they need. At this time, we do not work with any auto lenders, but we do recommend MyAutoLoan finder. They will do the research and help you locate a car loan

Unless you can afford to pay cash, you will need to obtain a mortgage loan when purchasing a home or other real estate. In a mortgage transaction, the lender loans you money for the purchase of real estate. You promise to repay the loan at a fixed or adjustable mortgage rate and sign a promissory note that sets forth terms of the loan agreement. You also agree that the real estate will serve as collateral for the loan. You sign a mortgage document that grants the lender rights in the collateral (this is also called granting a lien on the property). If you fail to repay the loan as agreed, the mortgage document gives the lender the right to foreclose on (take) and sell your real estate to pay off the balance.

Can I get a mortgage if I have bad credit or no credit history established?

In short, yes. However, you will likely be required to do a little more to get your loan. You may be asked to put as much as 20 percent down and/or have a cosigner. There are lenders who specialize in mortgages for people with bad credit. These are called "subprime mortgage lenders". Lenders will look at things like your assets, available cash, employement, and overall stability. If you plan to buy a home in the next year or two, we recommend that you obtain your credit file, and anaylize the information to check for accuracy and fraudulent activity. You can do a lot to help your credit scores (FICO scores, Beacon Scores) by starting early.

Are all mortgages the same?

There are many different types of mortgage loans. The primary differences involve interest rate variations, terms, and down payment requirements. Another difference relates to the kind of property you are buying (e.g., income-producing property, primary residence, or undeveloped land). Your loan may be a fixed- or adjustable-rate mortgage. Terms commonly include 15- or 30-year repayment schedules. Down payment requirements typically range from 0 to 30 percent, depending upon the loan program and the borrower's credit rating.

There are a variety of mortgage loans that provide for staggered or graduated repayment terms. These include intrest only, energy, balloon, graduated payment, and growing equity mortgages. There are also mortgages issued under government programs, such as the Federal Housing Administration, the Veterans Administration, as well as bond-backed mortgages. Although these mortgages differ in various ways, they all provide the lender with the right to foreclose on and sell the real estate if you fail to make payments as agreed.

So, how do you get a mortgage?
Survey the market

If you are in the market for a mortgage, you may start by checking the real estate section of your local Sunday newspaper. Mortgage companies and mortgage brokers often advertise and compete aggressively for the same customers. You should also check with your personal bank, savings and loan association, credit union, or savings bank to see if they have morgage loan programs for which you qualify. You may get more personalized service from a bank where you already do business. You should also do a telephone survey of no less than six other lending institutions in your geographical area. Interest rates can vary significantly from lender to lender.

Call around to get an idea of the going rate. Compare it with what you see in the newspapers and hear from brokers. Ask your banker about mortgage programs for first time home buyers and government insured mortgage programs. Weigh your options, read the fine print, and remember that the lowest interest rate is not always the best deal. Some other issues to consider are the terms, the down payment amount, the monthly payment amount, closing costs, and private mortgage insurance requirements.

Typically, you apply for a bad credit mortgage loan after you have found a home to purchase or when you are planning to refinance your current mortgage. Some lenders will preapprove mortgage loans up to a certain amount, which allows you to shop as a "cash customer." In either case, you will be requested to complete an application. You must provide verification of income and other documentation. Be prepared to deliver this additional paperwork as soon as it is requested. Many home purchase agreements contain a deadline for obtaining mortgage approval.

If the seller of the real estate has a mortgage, you may be able to assume it. Most mortgages today are sold into secondary mortgage markets and are not assumable, but it is worth checking if you are having trouble obtaining a favorable mortgage on your own.

Under certain circumstances, the seller may be willing to finance the sale. You will need an attorney to negotiate the deal and prepare the sale documents.

What about tax implications for mortgages?

Generally, interest on home mortgage payments is tax deductible. See Home Mortgage Interest Deductions.

Can I repair my bad credit scores and history?

Repairing your credit takes some effort. We caution against hiring someone to do it for you, because it can be expensive and everything they do, you can do for yourself. In general, accurate information will not be removed from your credit file. However, you have a right to dispute anything on your credit file and inaccurate, fruadulent, or outdated accounts and information will be removed. It takes some time to get this done so we recommend starting now. You must first contact each of the major credit bureaus (Experian, TransUnion, and Equifax). Analyze the account histories on file. Then initiate a dispute (you can normally do this on their respective websites once you have purchased your credit file). To dispute information you must obtain your credit file DIRECTLY from the credit bureaus. You can not dispute information through a reseller (companies that offer a 3-in1 credit report, etc).

I can't seem to get a consolidation loan. How do I pay off my bills and other bad debts?

Debt consolidation loans are typically available to people who own a home. You can often times avoid bankruptcy by taking equity out of your home and paying off debts. This is a cost-effective way of consolidating debts given current mortgage rates versus the very high interst rates you are likely paying on your unsecured debts and credit cards. We caution here that paying unsecured debts with a secured loan (home loans) can be dangerous. If you are unable to make the payments you risk foreclosure. So it is imperetive that you make the payments on time. Be sure you can afford the new payments that come from the home equity loan before you apply.