Bad Credit Home Loans

Written by Beth Hrusch
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When looking for a home loan, a person with excellent credit has many choices. Lenders are eager to loan money to anyone with a history of paying back debt on time and as agreed. For a growing number of people, however, finding a lender who is willing to offer them a home loan is not so easy. Bad credit, bankruptcy or changes in marital and job status can all affect a borrower's chances of getting the money he or she needs for major purchases.

Bad Credit Requires Special Attention

While it is true that bad credit, no credit or bankruptcy puts the borrower into a different category for lenders, this does not mean that there are no options for anyone in these circumstances. Mortgage companies that specialize in bad credit loans have the expertise to assist borrowers with special needs. Often, a person with bad credit can still get a loan that is appropriate for his income and payment history.

A mortgage broker may be a good resource for those with bad credit. A broker has access to lenders that are equipped to handle bad credit loans and bankruptcies. This specialty market is governed by its own rules and regulations, and it is wise to deal with a lender that is knowledgeable about your rights and responsibilities under law. If you are already a homeowner, a good broker can help you determine if an equity line or loan would best suit your needs.

Acquiring a home loan with bad credit may not be as difficult as you think. Each borrower's case is different, and a lender who is familiar with these types of loans can review the credit of each individual to determine if the risk is within reason. A credit score does not always tell the whole story, and there are many factors to consider.

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