Second Mortgage Sub Prime Lenders For Bad Credit

Sub prime lenders offer second mortgages to people with bad credit. Charging slightly higher rates for the higher risk level, sub prime companies help you access your home's equity. With so many lenders online, vying for your business, you can find better rates by shopping around. Even with poor credit, rates can be as little as .5% higher than traditional equity loans.

Sub prime lenders by definition deal almost exclusively with people who have scores 649 or less. They can even provide financing the day after your bankruptcy. For this increased credit risk, they charge rates anywhere from 5% to 12%. Unscrupulous lenders will charge even higher rates or expensive fees.

To find what is reasonable, start requesting rate quotes. Not only will you get an idea of market rates, but you can sift through the scammers too. When you request a quote, be specific with your credit standing. You can always request your credit score from a credit monitoring service or reporting agency.

The internet has made the financing sector more competitive. With consumers clicking their way through financing offers, lenders can only stay in business by offering low rates and fees. A smart shopper will find these offers online.

Without having your credit score dinged by credit inquires, you can ask for general quotes online. By giving general information about your income, home's value, and general credit, you can get a good idea about rates.

Some sub prime lenders will also offer lower fees or rates by processing your application online. Financing companies save costs by working online, savings they can pass onto you.

To make your rate search easier, start with a mortgage broker site. By submitting your information once, you will receive multiple offers. If you find some promising offers, you can follow-up. If you have time, research individual lender sites. They too can offer great deals.

Before signing any contract, make sure you understand all the fees and rates involved. An initial low rate can be an expensive loan if closing costs are high. Use the APR to find the truly best deals. Also factor how long you plan to keep the loan. Lower fees and higher rates may be a better deal for those who plan to sell or refinance in a couple of years.

See Also:

Real Estate Investing 101 Understanding the Different Types of Lenders
The changes in financing options available for residential investment properties over the last 5 years are staggering. Lenders have relaxed the credit and income guidelines for qualification that formerly deterred many would-be investors from entering the real estate. In addition, the down ... more...

Subprime Mortgage Loans - Which Lenders Should you Avoid?
If you have bad credit, your options for a mortgage lender may be limited. For the most part, traditional mortgage lenders prefer applicants with a high credit score. If you do not match their criteria, you will likely have to obtain a mortgage from a subprime lender.Subprime lenders provide ... more...

Subprime Mortgage Lenders - Differences Between Subprime and Other Lenders
Subprime mortgage lenders specialize in offering financing to people with poor credit or riskier loans. Conventional lenders focus on low-risk loans and borrowers. While you will find better rates with conventional lenders, suprime companies offer more flexibility in requirements and loan terms ... more...

Bad Credit? No Credit? No Money? No Problem!
Have you ever walked into a bank or mortgage brokers office to apply for a mortgage loan and was told, Your credit doesnt meet our guidelines? Or even better, you dont have enough money for the down payment. How about, You dont have a long enough credit history for us to tell if you are a viable ... more...