Due to the current problems in the credit markets there are many people in America having problems with bad credit. People need easy access to cash, especially those buying a home, but loans and mortgages are no longer easy to get as edges are no longer willing to take on any risk at all in lending. If you’ve been trying to get a mortgage for bad credit you know this is true and may be looking desperately for a way around these problems.
Trust me when I tell you that you’re in the same boat as millions of others looking for a way around this dilemma of no money obtainable for personal loans, auto loans or mortgages. Plus, home values continue to slide southward and it appears the situation is getting worse instead of better. already government involvement has been unable to stop the halting of the credit markets and the unavailability of money for people and businesses to borrow. edges are failing and being sold left and right and those nevertheless standing are unwilling to offer loans.
There is a new solution out there and that is using hard money loans to buy real estate, both commercially and privately. Hard money comes from a group of investors who are willing to lend money out just like a bank. already though they are aware that your credit may not be perfect they aren’t too concerned with credit scores. They protect themselves in other ways and provided you meet their criteria they can help you get the money you need to buy a home without resorting to a mortgage for bad credit.
The groups of investors that make these hard money loans are people just like you and I, but with money to invest in good projects. They aren’t giving handouts, but are looking for a way to get a good return on their money. The way they do this is by insisting on high equity in relation to the loan amount. If you are able to come up with the minimum 35% down that these groups require then it’s quite easy for you to get a mortgage for bad credit.
In addition to the high down payment costs, you’ll find that most of these investment groups will amortize your loan over just two years. Yes, that’s short, but extensions can sometimes be had if you’re willing to pay additional points. With such a short loan period your goal will be to refinance the loan as quickly as possible, but the two years will give you time to enhance a bad credit score and will also give the economy time to retrieve so refinancing might not be that hard in 18-24 months time.
Each investment group is different so you’ll want to research them to see which one might best meet your needs. Some investment groups will already consider hard money home equity loans for home improvement and construction. One thing that will be consistent among the hard money lenders is the short amortization of the mortgage, the high down payment requirement and the high interest rate. While it certainly isn’t the best option for a mortgage, in today’s credit market it might be your only option if you need a mortgage for bad credit.