Summit County Colorado
Real Estate and Mortgage

Discount Summit County Colorado Real Estate.
BUYER REBATES. SELLER DISCOUNTS

Receive Special Incentives and Discounts
For Buying and Selling Colorado Real Estate.
Summit County Colorado Real Estate

Bad credit mortgage loans for Coloradoreal estate.

Summit County Area Resource Directory
Links to Local Resources

MLS Property Search	Request Real Estate Information	Mortgage Site - Interest Rates & More
Have New Listings E-Mailed To You	Mortgage Pre-Approval / Pre-Qualify	Mortgage Calculators

Bad Credit Loans / Mortgages and Sub-prime Lenders

This article offers information on bad credit mortgages and sub-prime lenders. Discover how to borrow and what to expect when looking for sub prime financing resources.

There are lenders that specialize in bad credit mortgage loans. They are known as "B-C paper" or "sub-prime lenders". If your credit score is less or much less than perfect and you need a mortgage or home loan, don't despair. Sub-prime lenders provide bad credit mortgage loans as a much needed service for a huge portion of our national population. Bad credit mortgage loans are really more predominate than one might expect in many sectors of our society these days. So, if you need sub-prime lenders or a bad credit mortgage loans, you're not by yourself. Many bad credit mortgage loan programs are available under many different terms. One of them should fit your particular needs.

Bad credit mortgage loans are to be used to accomplish your immediate needs. It should provide a benefit to you such as saving money through debt consolidation, doing home improvements which adds value to your home, purchasing a home to live in or as an investment property. Use it for any other valid purpose for borrowing money. Loans for folks with bad credit should be considered a temporary financing arrangement. Let's face it, you will be rebuilding and re-establishing your credit as quickly as you possibly can. Bad things happen to good people every day. These products help you get things back on track and keep a quality of life you're used to.

Sub-prime lenders and their loans carry a higher degree of risk. In exchange for that higher risk, the sub-prime lender receives a higher return. You'll agree that this is only fair. Below are some of the tradeoffs you should expect while shopping.

Interest rates are typically 1% to 3% higher on sub-prime loans than the "A" paper mortgage products. A higher interest rate means a higher monthly mortgage payment. Just be sure the purpose for borrowing justifies the indebtedness and monthly payment. Interest rates are just one aspect that sub-prime lenders use to compensate for higher risk.

Loan fees and costs can be a little higher too. This is not always the case though. Be sure to shop for your sub-prime lenders carefully. Many lenders or mortgage brokers will try to take advantage of you due to your credit situation. You as the borrower are still in the driver's seat. There is lots of competition in the sub-prime lending industry. Just shop carefully for a good broker.

Sub-prime lenders will usually offer products on a lower Loan To Value basis than the "A" paper products. Usually, 85% of the homes value is the maximum. The logic here is obvious. If the lender has to foreclose, they need to be able to recoup the balance plus costs. LTVs as high 90-95% are available under certain circumstances.

Prepayment penalties are common in sub prime lending and bad credit loans. They can vary from 1 to 3 years depending on the provider and the product. A prepayment penalty is usually 80% of six months interest on the remaining balance of the loan. Pre-payment penalties are reasonable these days.

Though these products are not the same as Fannie Mae in interest rates or terms, they do provide a valuable resource to those of us that have had some life challenges in the credit area. Many, many Americans have had experiences that have had a negative affect on the ability to repay the debts they incurred as agreed. Business relationships, divorce, illness, and plain old dumb luck are but a few reasons that financial obligations must be put aside temporarily while the source of the problem is fixed. As with any financing tool, you should give careful consideration to the long term benefits and consequences of the decisions you make today.

Like most of us, your home is likely your most valuable asset. You've worked hard for it and it may be able to work hard for you. Let your home equity go to work on debt consolidation, catching up on mortgage payments or fixing up with home improvements. Either way, you have a resource in the sub-prime lending arena.

Note: If you would like to discuss how you might finance or purchase a home, just give us a call.

Breckenridge | Copper Mountain | Dillon | Frisco | Keystone | Silverthorne
Colorado Ski Resorts | Vacation Property | Home