Author Box
Articles Categories
All Categories
Articles Resources

100% Financed Mortgage Loans With Bad Credit: Know Your Sub Prime Options

February 22, 2012 | Comments: 0 | Views: 135

Having bad credit can lead people to think their loan options are very limited. In fact, most home buyers tend not to know the fully array of loan options available, or even the areas different lenders can specialize in. The result is they miss out on opportunities, like 100% financed mortgages.

There are lenders who specialize in loans with bad credit and who even offer 100% mortgages approved with bad credit. These lenders have different ways in dealing with applicants with low credit scores, so as to off-set the risks that turn most lenders off the idea of approving them.

Applicants with low credit ratings are better off applying to lenders who specialize in the low credit financing because most traditional lenders would easily disregard them. And even worth those willing to accept bad credit applicants, the chances of securing mortgage loans financed at 100% are very slim indeed.

Approval with Bad Credit

Applying for a mortgage is not difficult as long as the applicant can find the right lender to apply to. Many applications gain approval if the necessary criteria are met, but the lender must also be suitable. In this case, sub prime lenders are ideal.

Sub prime mortgage lenders offer different forms of loans, such those for the self employed, for down payment assistance, for closing cost assistance and many other types that help an applicant achieve a 100% mortgage, approved with bad credit.

Often, these sub prime lenders are a better option simply because of their expertise. They also tend to charge above the general rates of interest, but are also known to offer better rates and terms than mortgage loan financed at 100% offered by the alternatives.

Advantages of Sub Prime Lenders

For first-time home buyers who may have no financial history, sub prime loans are perfectly suited. Unfortunately, a low credit score still means that the applicant cannot qualify for a prime rate, but the fact that the possibility of securing a 100% financed mortgage with good terms still exists does make up for that drawback.

The vast majority of traditional mortgage lenders expect applicants to have full-time employment for at least two years. With sub prime lenders, the condition is half that for an applicant to qualify for a 100% mortgage approved with bad credit.

Of course, not all sub prime lenders approve mortgage loans financed at 100%. In such cases, an applicant will need to have access to a lump sum in order to make a down payment and cover the closing costs of purchasing the property.

Getting Mortgages Financed at 100%

If an applicant manages to acquire a mortgage broker, then that broker is well placed to find the right sub prime lender - ideally, one that will approve 100% financed mortgages with poor credit with good terms. In some situations though, the applicant can qualify for a 103% financing, so closing costs can also be accounted for.

Of course, a 100% mortgage approved with bad credit is one that requires no down payment. But no everyone can expect to secure one. This is because in order to qualify to get a mortgage loan financed at 100% the applicant must have a credit score of 580 or more. For anything above 100%, an applicant must have a FICO credit score of at least 600.

Mary Wise is a personal loan consultant who has been associated with Guaranteed Bad Credit Personal Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Bad Credit Home Equity Loan, and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Bad Credit Home Loan


Bad Credit Mortgage Loan


Guaranteed Mortgage Loan


Sub Prime Lender


Easy Loans

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 257

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 210

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 240

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 262

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 240

This is the question many property owners might have when they are thinking about re-financing their house. The fact is that the answer for this question is a rather complicated one and the correct

By: Demetrius Weatherspoonl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 177

Getting rejected for a mortgage loan is upsetting especially if you are borrowing it for something important like a home loan. Therefore, before applying for one, make sure that you are qualified for

By: Dawie Besterl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 191

For years, underwater borrowers who remained current on their mortgages were forgotten and forsaken. At last, they have options. Here are the details.

By: Bill Irelandl Real Estate > Mortgage Refinancel July 05, 2012 lViews: 173

  Such is the strength of the Brazilian mortgage market at present; a number of the biggest banks in Brazil and across the globe are locked in intense competition in order to gain a bigger share of

By: Waseem Saddiquel Real Estate > Mortgage Refinancel July 03, 2012 lViews: 199

A mortgage originator (also known as "loan officer") is an employee of the mortgage lender responsible for processing mortgage transactions to lenders and borrowers. The originator is also

By: Dawie Besterl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 176

Mortgage refinance loans with bad credit exist. However, before moving forward in your search, understand the options available and where you fit into the equation.

By: Donna N Hammondl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 157

The fact that home loans for people with bad credit are available means that buying a new home is still possible for everyone. But there are conditions that must be considered before seeking one.

By: Mary Wisel Real Estate > Mortgage Refinancel June 29, 2012 lViews: 142

Approvals on payday loans with bad credit are amongst the most commonly secured loans on the market. In fact, they are much more simply approved that many expect and offer a genuine break to

By: Mary Wisel Finance > PayDay Loansl June 27, 2012 lViews: 185

Not everyone can qualify for no credit check military loans, but for those that do, approval can be virtually immediate. However, it is important to know there are factors to consider.

By: Mary Wisel Finance > VA Loansl June 21, 2012 lViews: 179

Approvals of mortgage loans for people with bad credit is more common than one might expect. But when the specifics are examined there is no great mystery why. Preparation is the key factor.

By: Mary Wisel Real Estate > Mortgage Refinancel June 10, 2012 lViews: 156

Getting money fast is hard when you have bad credit. That is why using a no credit check loan to meet those needs is really a good choice. This article will explain the details about no credit check

By: Mary Wisel Finance > Personal Loansl April 25, 2012 lViews: 178

Convincing lenders to approve a $25,000 unsecured loan is not a simple case of filling out the application form. But there are some steps to take that will improve the chances of success.

By: Mary Wisel Finance > Unsecured Loansl April 20, 2012 lViews: 175