Understanding bad credit mortgages

Read on and understand the process of how you can apply for mortgages even with a bad credit score.

09:33 16 May 2013

A lot of people are having difficulty with their finances these days due to tough economic conditions and soaring unemployment. People who have missed payments on their loan are now suffering from bad credit score.

If you’re one of them and if you want to apply for mortgage, you’ll be happy to know that there are certain ways that you can make this happen.

Your first option is to look for lenders who are specializing in bad credit mortgages.

These lenders usually help those people who were rejected by big banks and huge lending institutions. They can offer people short-term solutions. After a couple of years, and after you are successful in improving your credit score, you can have your house refinanced.

Another option is to get somebody, like a friend or a family member, who has a great credit score to be your co-maker.

You may also opt for a “rent-to-own” scheme where part of your monthly payments will be put towards your down payment. This is in order to process your loan for a property when your credit score improves.