A bad credit mortgage is the term given to mortgage given to those that have poor credit histories. These are also known as “sub prime” (non traditional), and are considered a significant risk to a mortgage lender. As a result, Bad Credit Mortgages often have higher rates and fees associated with them.
While it is possible to get a mortgage with “challenged” credit, you will usually be much happier with your terms if you take some time to do the basics of credit restoration. Also, you will usually be dealing with a non traditional lender which meas your mortgage may not be reported to the credit bureau (meaning that it won’t be helping your credit scores improve.)
There are two resources that we recommend for credit repair:
1. Lexington Law. There is only one credit repair company that gets our full endorsement, and that is a Law firm that specializes in credit repair, Lexington Law. You can visit the Lexington Law site here and enter our client credit restoration program.
2. Read The Bankruptcy Mortgage Book which was written primarily for those who have had a bankruptcy, but the methods are very similar for those that have had poor credit histories. I strongly recommend buying the book so you know how your situation differs from that of someone with stellar credit, also, these are several things you need to know so that an unscrupulous lender does not take advantage of you.
It helps if you start out by speaking with a trusted mortgage lender who understands the credit repair process who can walk along side of you and give you additional helpful tips along the way.