Which Mortgage Lender is Good for Bad Credit?

bad credit mortgagesThere are two types of mortgage lenders, but which is right for you when your credit is less than perfect? Unless you consult with a mortgage broker, you may never know! Here we’re going to talk about mortgage brokers; be they conventional or alternative, there’s always a financing solution out there waiting for you. Don’t let bad credit be a road block to getting a good deal!

What Exactly is Bad Credit?

Bad credit can be different things to different people, so let’s put it into perspective: a score of “600” is considered average. Most people really land around the 550 mark, and some land around 500 who’ve had a little trouble. A score of “800” is considered the best you can have, but very few people ever have this kind of credit. So if you have “600” or better, you’re in good shape to get a mortgage from just about any lender.

If your score falls below this, you may want to consider credit repair or debt consolidation. You shouldn’t have to take a worse rate just because your credit sucks. You should be able to get everything you need from a mortgage broker. They can first tell you what you need to do to improve your credit. They’ll go over your finances and help you know if you’re equipped to get a mortgage now or if you should save up a little more.

What Are the Differences Between Mortgage Lenders?

 There are two main types of mortgage lenders: conventional and alternative. Conventional mortgage lenders will help you get the money you need to buy a home or refinance your current mortgage, but they want people who have good to great credit to borrow from them. While many will give mortgages to people who don’t have good credit, they’ll take it out in interest and make it not worth pursuing.

Alternative financing with private mortgage lenders is easy.  Instead of borrowing from a bank, you’ll be borrowing from lending companies or private individuals who give these types of loans. With an alternative lender you won’t have to worry so much about your credit score as you will your credit history.

 If you wander too far out of the 500 credit range, you’ll still need credit repair with these kinds of loans. You’re going to want to raise your score by 50 points over a few months (this is totally doable), and you’ll be able to use this as leverage to get a good loan.

Which is Right for You?

Each case is different and you’ll want to talk to a Toronto mortgage broker to find out which one will be right for you. Some people with great credit may find that a private mortgage will give them a better deal, and others with average to bad credit could get a great deal with a conventional lender. No matter what you do, make sure you have a mortgage broker working with you.

To learn more about our great rates on bad credit mortgages, click here:

Bad Credit Mortgages Can Help You Get Into a Home Today!

bad credit mortgagesIf you have bad credit, you know how hard it can be to get the credit you need to buy a home or refinance one you own. All you need to do is find a good mortgage with a Toronto mortgage broker and you’ll be able to make your home dreams into reality, but you’ll need to make sure that you’re working with the right lenders! Lenders are what make all the difference in this kind of a deal! You’ll want someone who understands your situation and won’t judge you for a few mistakes ages ago that don’t reflect who you are today.

What Kind of Credit do You Have?

Almost no one has “good credit”, but it’s important to remember that everyone has different definitions for good and bad credit. If you want to know a range that you have to watch out for, it’s going to be the 600+ FICO score range. Anything above a 600 is considered nominal to great, but anything below that is considered a red flag. You’ll want to talk to a Toronto mortgage broker before you proceed to know what kind of chances you have and which kind of lender will be right for you.

What Lenders Give Bad Credit Mortgages?

Almost every kind of lender gives out this kind of mortgage, but you’re going to want to make sure that you choose the right one for you. Some mortgage brokers will tell you to look at private mortgage lenders, others will tell you to lean more towards conventional mortgages.  Whatever you do, you’re going to want to talk to many different lenders before you decide on the one that will lend you the money. They’re going to have to offer you one heck of a deal before you just sign up with them.

Know Who You’re Dealing With

Knowing what lender you’re dealing with will help you avoid any problems in the future. When you work with a Toronto mortgage broker you’ll be able to avoid the worst lenders in the area. They will know who has and doesn’t have a good reputation. The problem with these kinds of lenders is that they’re only interested in short term profits and not long term relationships. If you choose the wrong lender you could lose out on good interest rates, lose your money and even worse lose your home.  Don’t let this happen to you, know who you’re dealing with before you sign on for a bad credit mortgage.

Can You Save Money with a Bad Credit Mortgage?

If you get a mortgage that is especially formulated for people with bad credit, it can save you thousands if not more over the life of your loan. You want a lender who isn’t going to penalize you for mistakes in the past. This is why you want to make sure you’re working with the right Toronto mortgage broker before you start shopping for a loan.

Who are Hard Money Lending Companies?

Hard money lenders are thriving in Canada, and with good reason! But it’s important to make sure that you speak with a Toronto mortgage broker before you start look at a hard money lending solution. Here we’re going to talk about these types of lenders and what hard money lending is. Remember: don’t choose this type of financing before you speak with a professional!

What is Hard Money Lending?

Hard money lending is what is known as “asset based financing”, meaning a piece of property like a home or land is used as collateral. This can be a house you own now that is on the market while you’re trying to buy a new one. These are technically also “bridge loans” or “bridge mortgages”. You’ll be able to borrow up to 70% of the worth of the property. So if you own a property worth $1,000,000 and you want to get a hard money loan against it, you’ll be able to get up to $700,000. But this is only if you have a really good Toronto mortgage broker on your side (like us!) to make sure you’re getting the maximum amount of money for your property.

What Are the Criteria for Hard Money Lending Lenders?

Hard money lending criteria vary depending on what lender you select for your hard money loan. They can use traditional things like your credit score, collateral (how much the property you’re using as collateral is worth), income, employment and a myriad other things. It will really depend on who you approach, but it also depends on who acts as your intermediary. You can always try to find a good hard money lender on your own, but you’re going to need a mortgage broker to help you find the best of the best. No two situations are the same and you’ll need to be paired with a lender who will understand your unique circumstances.

Who are Hard Money Lenders?

Hard money lenders are usually private companies or individuals who provide borrowers with short term loans. They’re known as bridge loans because they typically don’t last very long and need to be repaid in a shorter time than a traditional mortgage; you’d be hard pressed to find a 30 year hard money loan. These kinds of loans are riskier for the lender than a traditional loan, so interest rates may be higher than a mortgage you receive around the same time.

What are Hard Money Loans Used For?

Hard money loans are generally used to “bridge” the gap between traditional financing and the borrowers own money. For example if a borrower has a down payment and a financing from a traditional lender, but can’t afford an extra $12,000 to buy a property until their first home sells, they can get a bridge mortgage or a hard money loan. It’s important to make sure that the hard money lender that you’re dealing with is on the level. Let us help! As Toronto mortgage brokers we have the relationships and knowledge to get you the best hard money loan; contact us today and find out more.

How to Find a Hard Money Lender

Hard money lending is a good way to get money when you can’t find any other type of loan… but is it the right kind of lending for you? If you need money fast, but you don’t have great credit or you can’t get financing from a more traditional lender, this may be the right choice for you. Here we’re going to talk about what hard money lenders are and what they’re not, so you can make the best choice for you. Let’s get started and see what hard money lending is all about!

What is a Hard Money Lender?

A hard money lender is just a lending company that gives out a special type of loan backed by your property. So if you’re going to buy a house while you’re selling one, you can get a hard money loan, also known as a bridge loan, to get enough money to cover a property. They’ll hold a certain amount of equity on your house until you pay off what you’ve borrowed. This is known as collateral.

What Kind of Collateral is Acceptable with Hard Money Lending?

You’ll want to speak with your Toronto mortgage broker (like us!) to find out how this works. For the most part this means you’re going to be using the property you take a loan out on to get the loan. So if you’re buying a property and getting a hard money loan, they will use that property as collateral. If you’re getting a bridge mortgage (another kind of hard money lending) they will use the house that is on the market as the collateral.

Is it Risky?

Hard money loans can be risky if you don’t know what you’re doing. This is why it’s so important to have the right people working on your side to make sure you’re getting the most out of your loan. You’ll want to speak with one of our Toronto mortgage brokers to find the right hard money lender for your needs. There are many different types and some will not be a suitable fit for what you need. Some will only offer money on commercial properties for example, while others will only lend money to people with excellent credit. There are caps on how much interest they can charge (these are generally known as usury laws) to prevent price gouging.

How to Find a Hard Money Lender

Finding a hard money lender is as easy as finding a local Toronto mortgage broker. We’ll help you find the right lender for your circumstances. No two borrowers are alike and no two lenders are either! We’ll help you find the right lender and avoid the wrong ones. We’ll show you comparisons from different lenders who want to work with you and help you choose the right one for your needs. Why settle for a low interest rate when you can get the best terms and the lowest interest rate? Let us help you today!

Get the Money You Need with Hard Money Lending!

hard money lendingIf you need money, but you just can’t find the right lender, hard money lending can help you. You’ll be able to get the money you need to buy a home; navigating the tricky waters of Canadian hard money lending can be difficult, and that’s why you’ll want Toronto mortgage brokers like us on your side. We’ll be able to help you find the right lender that fits with what you need. Remember, just because you have less than perfect credit doesn’t mean you can’t get a great deal on your next mortgage!

What is Hard Money lending?

Hard money lending is basically a short term private loan. They’re meant to be repaid quickly, and they’ll lend to anyone who has an income and a house (like the one you’re buying). You’ll want to make sure you have a smart Toronto mortgage broker on your side to ensure that you’re getting the best possible loan terms. While interest rates are important (the lower the better), you’ll also want to know that you have enough time to repay your loan. There are so many things that can go wrong with this kind of mortgage, so you will want someone on your side that can help you make sure it’s the right type of loan for you.

Can You Benefit from Hard Money Lending?

Almost anyone can, but you’re going to want to make sure that you have no other kind solution. It’s called the lending of last resort for a very good reason; while you can get good terms that will help you bu the home you want, you could end up paying big over the next ten years when you don’t have to. This is why it’s just so important to have a good Toronto mortgage broker like us on your side to help you make sure that this is the right option for you. Hard money lending is there for people who can’t get any other kind of financing; just because you have bad credit doesn’t mean you have to get a raw deal on your mortgage.

Who Offers These Types of Loans?

The main providers of these types of loans are private mortgage lenders. In Canada, they can account for anywhere between 17% and 35% of total lending; they’re the same as any other type of mortgage lender, but you’ll want to make sure that you work only with a reputable private mortgage lender that has a well-known track record. Many private mortgage lenders are hard to find, and when you work with Toronto mortgage brokers like us you’ll have a smart entre into the world of private lending.

It’s important to make sure that you’re getting a great deal! We work for you helping you get a great interest rate and loan terms you can live with; we’ll also make sure that you avoid any lenders that are new or ill-suited for your needs. This will help you make sure that you get a great mortgage at a great rate, hard money lender or else.