March 1, 2010

Guaranteed 125% Remortgage Loans Even for Bad Credit!

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February 28, 2010

Real Estate: Getting a mortgage with bad credit by high down payment?

Hi,
We currently own a mobile home on it's own land. We're interested in purchasing a house, but have bad credit. A family member is going to loan us 40,000 (we'll pay them back when the mobile sells). The house we want is 90,000. We make about 25,000 a year. Will we be able to get financed?

Even if you had good credit 90k is too much debt on your income. Additionally it is really hard to qualify for micro loans, 50k is just not enough to bother with.

You are going to need to purchase whatever you can get for the 40k cash you will have after you sell the trailer.

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County Court Judgements And Bad Credit Mortgages

A County Court Judgement is an order by the courts for one party to pay an amount owing to another party. County Court Judgements, or CCJs, affect people's credit files and will normally require the applicant to abandon the prospect of applying for traditions mortgage products and instead apply for bad credit mortgages.

When the order is given by the County Court, the creditor will be required to repay the debtor within a specified period of time. If this is not done, a County Court Judgement will be recorded on the creditor's credit file. This entry can remain on the credit file for six years if it is not settled in the meantime. Having impairments to a credit file such as CCJs can make it extremely difficult to obtain standard mortgages from high street lenders.

Because County Court Judgements are so common, a large number of people are unable to apply for standard mortgages. This could be viewed as unfair as CCJs can be recorded on a person's credit file for trivial amounts of money and sometimes without their knowing. The massive growth in the number of people who suffer from this form of adverse credit has lead to incredible growth in the market for bad credit mortgages in recent times.

In addition to mortgage applications being affected by outstanding County Court Judgements appearing on a credit file, CCJs that are paid in full at a later date can remain on the credit file for up to six years. Lenders will therefore be able to see that there was once an outstanding debt despite the fact that is has since been cleared. Although the entry will indicate that the debt has been settled, it may not be removed completely. This means that a person may be forced to apply for bad credit mortgages several years after paying off their County Court Judgements.

Many lenders will now consider mortgage applications from people who suffer from bad credit. In fact dozens of specialist lenders that focus solely on bad credit mortgages have appeared in recent years so individuals who have bad credit will not necessarily be unable to buy a home. Although the recent credit crunch has seen such lenders dwindle in numbers in recent times, specialist lenders still exist and offer mortgage products.

Because the market for bad credit mortgages is highly specialised and many of the lenders are too small to open their own branches to the public, it may be necessary to apply for bad credit mortgages through a mortgage broker.

An independent mortgage broker will be able to search the entire market for bad credit mortgages using special software. This can save both time and money when compared to searching for a mortgage on your own because an independent mortgage broker will have access to the entire mortgage market and will be able to find the most suitable bad credit mortgages to suit your personal situation. If you require a bad credit mortgage product contact an independent advisor today for impartial advice.

michael sterios
http://www.articlesbase.com/finance-articles/county-court-judgements-and-bad-credit-mortgages-417412.html

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February 27, 2010

Bad Credit Mortgages

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February 26, 2010

Qualifying For A Bad Credit Mortgage - An Inside Look

Knowledge is, indeed, that which, next to virtue, truly and essentially raises one man above another - Joseph Addison

There is little doubt that purchasing a new home is one the biggest financial decision most people face but finding the right house that you can call home is becoming an increasingly difficult task.

Step one in the home ownership process is getting pre-qualified for a loan. When you get pre-qualified for a loan the lender works backwards to determine the biggest loan that you qualify for according to your income, credit and current outstanding debt.

How do they do it? Here is brief overview…

First off, you need to remember that only income that can be documented is considered income when it comes to determining how much you qualify for. If you can't provide a lender with proper documentation of your income then they won't used it.

For example, if you get paid by the hour and work little overtime or if you get paid on a salary then determining income is pretty easy. If you are paid monthly your income is multiplied by 12 and if you get paid every couple of weeks it's multiplied by 26 and so on.

On the other hand, it gets more difficult if you work a fair amount of overtime or receive bonuses and commissions because that income varies. The normal process for borrowers that fall into this category is that the loan officer will simply use previous one or two years W2 income and combine that with the past few months actual wages from you pay stub and then average that total income to arrive at your current monthly income.

For self-employed or 1099 borrowers income is pretty much determined by what your net income indicates from you tax return. Even if you make $75,000 a year but due to expenses and write-offs your tax return shows that you make $30,000 then $30,000 is used to determine how big a loan you can afford or qualify for.

However, over the past few years lending institutions have becoming increasingly creative on how they approve borrowers for loans, especially those borrowers with a bad credit history. Many programs require less income documentation and in the case of a loan programs like "stated" or "no documentation" no income documentation is required.

In summary, with the rapid increase in home values over the past few years pricing many families out of the home market, the good news is that the resulting "easing" of lender requirements has helped offset this by making it much easier to qualify for a mortgage and get into the home of your dreams.

For options in finding the best mortgage, new or refinance, check out the links below.

Shelby Ryan
http://www.articlesbase.com/finance-articles/qualifying-for-a-bad-credit-mortgage-an-inside-look-123239.html

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