Articles about Bad Credit LoansHow About People with Bad CreditRegardless of what the source of your bad credit is, there are many solutions to obtaining a home loan. There are other people in the same negative financial situation as you, and lenders are aware of this. The bad credit rating may stick with you for a long time, but it does not mean that you cannot become a homeowner.
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View as PDFWhat Are The Dangers of a Bad Credit MortgageWhen a mortgage lender evaluates your eligibility for a mortgage, they look at two main criteria: your ability to pay, and your willingness to pay. Your ability is based on your monthly income to debt ratio, and in general, if your total monthly debt does not exceed 36-40% of your total monthly income, you will meet the requirements of this section of the evaluation. Your ability to pay, however, is based mostly on your credit rating, and even if your income to debt ratio is good, a low credit rating can affect your eligibility for a favorable interest rate. In the worst situations, you may be eligible only for a sub-prime mortgage, also known as a bad credit mortgage.
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