Bad Credit Mortgage Loans: Qualifying for a Good Mortgage with Bad Credit is Easier than You Think

Bad credit mortgages from Sub Prime mortgagesee that you have been employed for at least two
lenders are easier than ever to get; however, qualifyingyears. If you are self-employed this will be more
for a good mortgage with competitive rates can bedifficult to prove; your lender will need at least two
tricky with bad credit. If you are a homebuyer withyears of your self-employment tax returns.
poor credit and are in the market for a mortgage, hereYour Down Payment
are several tips to help you find the best loan withoutHaving the necessary down payment will help your
losing your shirt.application significantly. Most mortgage lenders will
The mortgage industry is a fiercely competitivework with you if you have at least 10% down. If you
industry. As a result most lenders are tapping anyhave less than 20% the lender may require you to
market they can to improve their profits. This includespurchase Private Mortgage Insurance. It would be in
the bad credit or sub-prime mortgage industry. Tenyour best interest to avoid paying Private Mortgage
years ago having bad credit would prevent you fromInsurance as this can add hundreds of dollars to your
qualifying for a mortgage. Today qualifying for amonthly payment amount. There are bad credit
mortgage with bad credit is easy; you can even qualifymortgage options available that do not require Private
for 100% financing of your home purchase.Mortgage Insurance, namely an 80/20 or "piggy back"
As a homeowner with bad credit there are steps youmortgage.
can take to improve your credit before applying. ThePrivate Mortgage Insurance Blues
easiest way to improve your credit is to review yourPrivate Mortgage Insurance is expensive and does
credit records for errors, dispute any inaccuracies, andnothing for the borrower. This insurance only protects
settle with creditors to have negative informationthe lender from losses they incur if they foreclose on
removed from your credit reports. Once you clean upyour loan. If there is no way for you to avoid Private
your credit history you need to focus on paying all ofMortgage Insurance you will be able to drop it after a
your bills on time to build up a positive payment history.certain period of time or at a certain percentage of
This process will take you about six months; however,equity if your payments are current. Ask your lender
if you don't want to wait that long you can still apply,about the automatic termination or if you can have the
just be prepared to pay more.insurance terminated early.
Your Income is Your AssetYou can learn more about your bad credit mortgage
The most important aspect of your application afteroptions by registering for a free mortgage guidebook.
credit is your ability to repay. Mortgage lenders like to