| If you are an individual with exceedingly bad credit, | | | | consider outrageous; however, for many these are the |
| judgments, garnishments, and repossessions, you might | | | | lender of last hope. Hard money lenders typically |
| find that sub-prime mortgage lenders will deny your | | | | finance up to 75% percent of your purchase price. |
| application. If filing bankruptcy is not an option for | | | | You will need a significant down payment to qualify. |
| starting over with your finances, a hard money lender | | | | The interest rate you can expect to pay can be as |
| could help qualify you for a mortgage. Hard money | | | | high as 20% depending on the laws regulating loans in |
| lenders are expensive; here are several tips to help | | | | your State. This interest rate also comes with high |
| you secure financing without losing your shirt. | | | | fees and points. |
| Hard money lenders profit by lending to people banks | | | | The most important aspect this type of loan is that it |
| and bad credit mortgage lenders won't touch. These | | | | must not have a prepayment penalty. Your goal for |
| are people who have a history of being down right | | | | this type of loan is to clean up your act enough to |
| irresponsible with their finances. This is the type of | | | | qualify for a sub-prime mortgage at normal bad credit |
| person that for a time in their life simply didn't care. | | | | rates so you can rebuild your credit. If you've dug |
| They may have multiple judgments and write-offs on | | | | yourself a hole that you cannot climb out of with your |
| top of a bankruptcy on their records. Climbing out of a | | | | credit, a hard money lender could help you buy a home |
| hole this deep can be a difficult and expensive task. | | | | and get back on track, if you're careful. Before you |
| There is a way out; however, it's not pleasant. Hard | | | | sign a loan of this type you should check with your |
| money lenders are private businesses that finances | | | | local Better Business Bureau and State Attorney |
| individuals in this situation for a premium fee. Premium | | | | General to see if there are any complaints against the |
| doesn't mean a few percentage points either. These | | | | lender. You can learn more about your mortgage |
| lender charge excessive fees that many would | | | | options by registering for a free mortgage guidebook. |