| Acquiring a mobile home loan is a possibility today | | | | the deeds of the mobile home property until the loan is |
| even for people with bad or blemished credit scores. | | | | paid off. This reduces the risk to the lender. |
| Though a few lending institutions prefer to work only | | | | People having histories of bankruptcies or |
| with people with established credit, there are several | | | | delinquencies behind them are considered in the bad |
| institutions willing to lend to people with bad credit. | | | | credit category. There may also be people who are |
| The first question asked by the lender when | | | | rendered financially incapable due to physical |
| approached for a mobile home loan is about the credit | | | | redundancy. People who have no visible sources of |
| score. A credit score of less than 620 often finds | | | | income, due to divorce or unemployment, are included |
| problems in acquiring a mobile home loan. A loan might | | | | as bad credit people. There is a special type of loan |
| still be given, but the interest charged may be higher. | | | | for bad credit, which is called a sub-prime loan. A |
| The worse the credit, the higher the interest charged | | | | sub-prime loan is given against the property itself as |
| on the loan. Making a down payment reduces the | | | | the collateral, more like an equity loan. They are given |
| monthly payments in interest. However, missing a | | | | at interest rates higher than normal loans. |
| payment or paying less than the due payments will | | | | Today there are several lenders willing to lend to |
| lead to a serious balloon payment at the end of the | | | | people with bad credit. The entire lending process is a |
| term. | | | | question of perspective. It is dependent on the way the |
| One way of getting a bad credit loan is to go in for a | | | | lender visualizes the capacity of the borrower. Hence, |
| home equity loan. Lenders check three main areas | | | | if a particular lender refuses the loan, one can shop |
| before processing the loan - capacity (whether the | | | | around. This is applicable even if one wishes to hunt |
| borrower will be able to keep up the payments), credit | | | | for lenders offering lower rates of interest. It is |
| (what is the borrower's credit score) and collateral | | | | advisable to get at least three different quotes before |
| (what is the value of the loan). An equity loan takes | | | | deciding on a suitable lender. |
| care of the third factor. The lender may hold rights to | | | | |