There are a variety of circumstances that can lead to a low
credit score. Learn how you can get a bad credit mortgage Arizona and qualify for a home loan, even if your credit is
less than perfect.
Bad credit can make you feel like a failure. Many Americans
who have bad credit report feeling alone, miserable, and almost hopeless. There
is a false picture of a person with bad credit that paints him as
irresponsible, reckless, and even as a thief. This could not be further from
the truth. There are a variety of factors that can lead to a lower credit
score. Job loss, divorce, a sudden change in income, or even an old credit card
you forgot about can cause your credit score to suffer. Recent statistics
released from FICO Inc. show that 25% of the 170 million Americans with active
credit accounts have a FICO score of less than 600. This is considered a low
credit score and if you have a low score, you can have trouble getting credit
cards, car loans, and even store credit accounts.
If you are one of the 42.5 million Americans with a low
credit score, you probably assume that homeownership is beyond your reach.
However, with new bad credit mortgage Arizona
programs as well as federal programs, borrowers can qualify with
low FICO scores.
As with any mortgage it is important to analyze the risks
and benefits of a low credit mortgage. Once you have decided to stop letting
your FICO score hold you back, it is important to know your options. Most
likely you will not qualify for a bad credit mortgage through a bank, so it is
important to find a reputable mortgage broker. A broker has more flexibility in
terms of types of loans that can be offered so you are more likely to qualify
via a broker than a bank.
There are many types of bad credit mortgages that are
offered in Arizona. Many people know about adjustable rate mortgages and FHA
loans that are designed for long term homeownership. However, there is a less
well known bad credit mortgage Texas called
a hard money loan. Rather than the goal being long term homeownership, a hard
money loan is designed to be an investment strategy to help borrowers with bad
credit make smart real estate investments and turn large profits.
For many people with bad credit, they assume that real
estate investing is out of their reach because a bank will not lend them money
for a mortgage. A hard money loan is a type of loan that is designed
specifically for real estate investments. It is secured by a mortgage broker
but backed by an investor or group of investors instead of a bank. The loan is
for a short period of time, usually a few months to about 4 years. The goal of
the loan is a true investment, for everyone involved to make money.
In order to secure a hard money loan, you need to work with
a mortgage broker. You would determine a property that you wish to purchase
that is a sound investment. Typically these are fix and flip type houses that
can build equity quickly. Once you have a property in mind, your broker will
connect with a hard money investor or investment team. The investors will
examine the merit of the property and the money making potential. They will use
this information to determine whether or not they want to invest their capital.
Since a hard money loan is backed by investors, they are
more likely to give loans to individuals with bad credit. Instead of only
looking at numbers, the investors look at the potential for the property to
make money and don’t focus solely on the credit score of the borrower. Once the
borrower has renovated the property and sells it, the investors make back their
money plus a certain amount of interest. The borrower also makes money on the
investment so it is a win/win situation.
If a hard money loan
sounds like a good investment for you, talk with a mortgage broker.
A hard money loan is a special type of bad credit mortgage Arizona
in that it allows individuals with bad
credit to make real estate investments. These investments can have high returns
and have great money making potential. If you have bad credit but want to
invest in real estate, a hard money loan might be a good option for you. Talk
with a mortgage broker today to help you secure your first loan.
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23335 N 18th Drive Suite 120
Phoenix AZ 85027