What Kind Of Mortgages Can I Get From A Sub-Prime Lender?

Summary

Sub-prime lenders offer borrower with bad credit the chance to get all different kinds of mortgage loans.

Here are the loans you can get and ones you are unlikely to get if you have bad credit.

Different Loan Types

There are many different types of loans. They are offered for people with all kinds of credit scores, income levels, and other factors.

You can get a regular loan such as a 30 year fixed loan. There are many other newer loan options – from 50 year loans to minimum payment option loans.

Generally borrowers with bad credit are able to get most types of loans. Their interest rates may be higher than other borrowers, but they are still often able to get loans.

Bad credit usually limits the amount of money you can borrow on a given property.

If you have great credit you may be able to refinance and cash out 100% of the value of a property. If you have bad credit you may be able to only cash out 80% or 90% of the value of the property.

You may also be able to borrow more if you are able to fully document your loan even if you have bad credit.

You also may be able to get an exception to their credit requirements. Lenders can and do make exceptions to their credit guidelines. You will need to make the case that they should, and other parts of your mortgage application should be strong.

Loans Unlikely For Bad Credit

Some loans require good credit and full documentation.

Among these loans are 125% cash out loans. These are loans where a lender allows a borrower to borrow up to 125% of the appraised value of the property.