Having bad credit can be the death of any loan dream. But with a little research and planning you may be able to reach your second mortgage dreams with little trouble from your bad credit standing. There are a few things to consider when deciding on a second mortgage with bad credit. We work with many lenders who will work with less than perfect credit and it is easier than ever before to get a second mortgage with bad credit. Getting a second mortgage with bad credit is simply taking out a second mortgage with the circumstances slightly different according to your specific situation.
Options for second mortgages with bad credit include these most common used options like 30 year fixed rate mortgages, 15 year fixed rate mortgages, interest only loans and jumbos. There are specific qualifications for loan consumers with less than perfect credit that change from lender to lender. Always take your time and shop around for the best lender to provide the second mortgage term that fits you family’s needs. Paying back your second mortgage with bad credit on time can be the key to completely renewing your credit standing and changing your life.
Most second mortgage consumers have many questions and that is only multiplied when a shaky credit history is concerned. The most common question is; Can I get a second mortgage with bad credit? The answer is yes. Obtaining a second mortgage is possible for people with bad credit.
Truth about Bad Credit
There are new developments, changes and occurrences in the bad credit lending field every year. One 2004 study found that over 25% of all credit reports contained errors. These credit report errors can be things like false accounts or delinquencies (25%), listing the same debt multiple times (22%), or paid off (closed) accounts that are still listed as open on the credit report (30%). Your credit may not be as bad as you think. With the passage of the Fair and Accurate Credit Transactions Act which, last year, made it mandatory for the three major credit reporting agencies to each provide one free credit report each year to any vigilant consumer who requests one. Credit scores, generally called FICO Scores (the company which provides the formula and software for determining this benchmark is Fair, Issac Corporation) are not included in the Congressional mandate for free reports but FICO sells its scores and the three credit bureaus provide their own versions for a nominal fee.
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