In today’s market there are many types of home loans for people with bad credit.
- Hard Money Loan
- Manually Underwritten FHA Loan
- 2nd Mortgage home equity loan
- Reverse Mortgage Loan
Almost anyone with equity or a large down payment can qualify for a hard money loan. Properties that are free and clear can close really fast. In some cases where a seller is willing to assist with financing. Buyers with smaller down payments can even qualify when the seller is willing to do a seller hold back or seller second mortgage.
Hard money loans can be used to quickly access equity or close fast on a bargain purchase.
FHA loans with manual underwriting are tough to find and get, you’ll need to jump through a bunch of hoops and it will take 30-45 days to close typically. However they are the only loans that offer low interest mortgage rates for people with bad credit.
Reverse mortgage loans also known as a Home Equity Conversion Mortgage ( HECM ) have no credit qualifications. They are for senior homeowners age 62 and above who live in the home at lease six months out of the year. Reverse home loans can be used by seniors for any purpose and can even save a seniors home from foreclosure.
Make sure to visit our mortgage credit score improvement tips section in many cases improving your credit score 20-100 points is very easy, just a quick credit pull and two minutes of good credit report advice can make you a homeowner on the cheap with a FHA home mortgage loan.
If you have any questions about bad credit mortgages please give us a call 813-874-5800