HomeSubprime mortgage loan lenders offer a great service to consumers, who would otherwise not have the ability to buy a home or refinance their existing mortgage loans due to bankruptcy or low credit scores. These lenders specialize in working with consumers, who have less-than-perfect credit. Most prime lenders or mainstream mortgage lenders have subprime divisions dedicated to getting bad credit consumers into condos, townhomes, single family homes, investment properties, etc.
Finding a respectable subprime mortgage loan lender to finance your mortgage loan, 100%, requires researching various loan products. Most lenders will want you to put down 10% to 20% downpayment.
If you do not have this kind of cash, don’t panic. You can remedy the situation by shopping around for the “right” loan. This entails completing a loan application and indicating that you would like 100% financing. You will be able to get three or four mortgage loan offers. One of these offers is bound to offer you a 100% financing or something very close to it. A good lender can be creative in offering a good mortgage loan product. Whether you have excellent credit or imperfect credit – there is no reason to settle on the first mortgage loan that is offered to you.
Compare the loan terms: Interest rates, Loan type (ARM, 15 year fixed, 30 year fixed, etc), Point, Other fees, etc. Chances are your mortgage loan interest rate will be higher than someone with perfect credit. This is to be expected and should not deter you from getting a loan.
Source: Home Insurance