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Q: What is a private investor and how do they differ from a hard money lender or a subprime lender?

A: A private investor is an individual who lends out their own funds to borrowers who are unable to obtain a loan from a traditional lender such as a bank. It is also possible for private investors to pool their money into a fund that lends out money on a larger scale. Private investors are often wealthy or retired individuals who want a better return on their investments than they could expect to make in the stock market or other investment vehicles.

A private investor is essentially the same thing as a hard money lender. A private lender differs from a subprime lender in that the latter still funds loan through a lending institution such as a bank, although the interest rate is higher than a traditional conforming loan.

Q: Why would a bad credit lender fund my loan when traditional banks would not?

A: Hard money lenders, sub prime and bad credit lenders are often referred to as “high risk lenders.” These lenders have a unique understanding of specific types of real estate situations and markets. As long as the lending situation fits into the lenders comfort zone, they will usually make the loan. It isn’t that a bad credit lender gravitates towards overly risky loans or situations. Rather, there are additional safeguards in place for a bad credit lender. Namely, a borrower must have a 20% or higher equity stake in a property to qualify for a bad credit loan — the loan is therefore secured by a larger property ownership portion than many traditional loans. Read more of this >>

While shopping for auto insurance, an individual always aims for lower cost of insurance. In that case a good credit score may help to lower the cost. Credit score is a statistical method of evaluating an applicant’s credit worthiness. Companies are always trying to pool that part of the consumers which will provide the maximum profit with minimum loss. So they try to judge the rate of an insurance policy against the actual amount of claim. It has been found that almost all auto insurers use the credit information to decide whether to issue a policy. They even set the premium level on the basis of the credit score.

The companies generally do not look at the actual credit report. They just look out for the credit score. In fact they receive the credit score from any of the three major national credit depositories – Equifax, Experian and TransUnion. Credit scoring is a method to determine the likelihood that credit users will pay their bills.

Credit scores are prepared by analyzing a borrower’s credit history. The factors considered while calculating a credit score are:

• The duration for which credit is used.
• The amount of credit used versus the amount of credit available. Read more of this >>

A car with bad credit, just like any other car, will give you the ride you want. Okay, they might not be served on a platter but if you need a car…. but they are worth the ride. Customers suffer from bad credit circumstances do not mean they are bad people. It only means things happened! And every loan lender that is providing you with bad credit car loans do understand that. With car loans for bad credit you not only get the car you want there are added surprises on the runway.

Chances that you are getting Bad credit car loans are extremely bright. Banks, credit unions, finance companies all are providing loans for bad credit. People who would not qualify for bad credit car loans just five years ago can now easily meet the criteria.

When a borrower has bad credit, it will be a good start to begin with credit report. Every borrower is assigned credit score based on his performance with previous loans. It is a three digit number that most of the lenders use to evaluate the risk while lending you car loans. Each one of the credit bureaus – Equifax, Experian and Trans Union will have a copy of your credit report. Most lenders use Fico score which ranges from 300-850. Fico score 580 -500 and less means bad credit. This means you are heading for bad credit car loans. Now knowing your credit score is important for many lenders can take advantage of your ignorance.

Okays, assuming that you do know your credit score – let’s talk about bad credit car loans process. There is not much difference, yet there is a significant difference. Interest rates and down payment is the place where real difference shows. Interest rates with bad credit car loans will be higher as is the case with any bad credit loan. So there is no escaping that. Interest rates for Bad credit car loans would vary with credit score and will range from 5%-26%. Read more of this >>

A car is a necessity for most of us. It is difficult to make a living without having a reliable means of transportation. You can take the bus or train, but the convenience of a car allows you to accomplish more in an efficient manner.

People with bad credit, often find it difficult to finance big name purchases such as homes, cars, furniture, appliances, etc. Having repossessions, bankruptcies, charge-offs, liens or judgments on your credit report identifies you as a credit risk and creditors are likely to be reserved when, it comes to extending you credit.

These obstacles however should not prevent you from owning what you need. Yes, it is true that you will probably have to make your purchase at a higher interest rate than someone with a good FICO score and you will have to shop around longer to find reasonable interest rates – but all is doable. If you have bad credit and your are trying to purchase a car, follow these guidelines and will drive off the lot in your own car:

Get your credit report

If you suspect that your credit leaves something to be desired, the first thing you should do, is understand your credit situation and how creditors view you. The only way to do this, is to get a copy of your credit report. Get your free credit report to find out your credit score. Read more of this >>

So you want to buy a home? Unsure whether you will qualify?

I am here to tell you that applying and qualifying for a home loan is not as difficult as climbing Mount Everest or running a marathon, but there are some basic things that all lenders look for in your application. You can be lacking in one or two of these areas, but you must be strong in most of them in order to obtain a home mortgage. Let’s explore the 7 things that lenders look for when determining if you are worthy of a loan.

Job Stability: Lenders want to see a 2 year employment history on your application. The best situation is if you have been with the same employer for two consecutive years or more. Frequent job changes or gaps in employment of more than a month must be explained and can jeopardize your chances of obtaining the loan.

Own a business? Business owners must also document a 2 year history of the business by providing a letter from their CPA stating that they have been in business for at least 2 years, or provide a business license showing the start date of the business, at least 2 years prior to application.

Don’t have the 2 year history? Don’t worry, if you are strong in the other 6 categories listed below, you can still obtain a mortgage. There are “No Doc” loans designed especially for you. With a No Doc loan, the lender does not verify your employment history, and you don’t have to disclose it. However, you will pay a higher interest rate for this mortgage. Read more of this >>

A lot has changed in the lending industry since the beginning of the year.

Lenders are going bankrupt, Wall Street and the Secondary Market have stopped purchasing “high risk” loans (High LTV-Stated and No Doc, High LTV-Low FICO, and High LTV-NOO lending niches are considered “high risk”) and good loan programs for people with bad credit are being eliminated or revised. All this converging together is making it harder for those with bad credit to get a mortgage or get a mortgage with a good interest rate.

Find out what happened, who’s left and what your options are.

What Happened?

Seventy-Seven (That’s right—77) bad credit mortgage lenders have closed their doors for good since the beginning of the year—here are some of the notables:

- Southstar Funding (RIP 4-02-2007): Over 5.5 billion dollars in loans originated in 2005, employing over 700 employees, lending in more then 30 states and voted the “best company to work for” by Atlanta Business Chronicle in 2004.

- MLN (RIP 12-29-2006) One of the first to close their doors and one of the top 3 bad credit mortgage lenders in the country.

- Fremont (RIP 3-2-2007): One of the top ten bad credit mortgage lenders in the country.

Why Did This Happen?

A number of factors brought about the bad credit mortgage lender meltdown—issues like increasing interest rates, high national foreclosure rate, loan buybacks, defaults on warehouse line commitments and Wall Street & Secondary Market’s declining appetite for these types of “high risk loans”.

Who’s Left?

Not many…

Those that are still offering bad credit mortgages have realigned their positions with risk and the remaining bad credit mortgage loans being offered today are harder to qualify for then they were 6-7 months ago.

Here are few of the remaining bad credit mortgage lenders still offering bad credit mortgage loans Read more of this >>

It always is exciting to begin looking at homes for sale in your area, bigger and perhaps nicer than the property you currently own. Before you let the excitement carry you away and make an offer for homes for sale, first check your FICO score to ensure you can purchase homes for sale at the best rate.

If your score is below 600 for any reason, you need to take corrective action. Better to put off looking for homes for sale, until you can purchase one at a good rate. Otherwise, you will be paying thousands more than necessary for your homes for sale over the life of the mortgage. A score below 600 puts you at a disadvantage with homes for sale lenders; but with dedication and lots of effort on your part, you can improve your FICO score and get the better mortgage rate and terms for your homes for sale. This article gives you ways to improve your FICO score and your credit report.

Payment History

Your payment history accounts for 35 percent of your FICO score and has the biggest impact on purchasing homes for sale. It covers your timeliness of payments, bankruptcy, liens, wage garnishments, collections, delinquent accounts, and the severity of the delinquencies — all very important data to the homes for sale lender. Do the following to improve your payment history:

• Catch up any delinquent bills and make them current. Begin with the revolving credit accounts and then the smallest to the largest account balances. Then, stay current.

• Begin paying all bills on time. Read more of this >>

The web abounds with bad credit mortgage lenders and articles on such. A lot of people are often confused by articles they have read or stories they have heard that say that it is almost impossible in certain cases to get a bad credit mortgage loan with the current market. Or that all lenders have about the same rates and mortgages are all about the same.

In reality, most people don’t do enough research to get the right information before they decide to apply for a mortgage or refinance. And if you are in need of a bad credit mortgage loan then this article is even more important, because there are a lot of unscrupulous lenders out there that will gladly take advantage of your situation. Here are eight things you need to know for more skillful borrowing:

1. Be Prepared

The first thing you must know before applying for a bad credit mortgage loan or home refinance is how much you can afford to spend before you even begin your search. Carefully go over your credit history by requesting a copy of your credit report.

It is estimated that 79% of all credit reports contain errors, so take care of those first. Most small errors can be cleared up by sending a letter and proof of the error to the credit bureaus. However, major errors should probably be handled by a good credit attorney. We have a very good one on our website if you are interested in this service. Read more of this >>

Refinancing your house can save you money. Even with the interest rates climbing, they are still at the lowest levels in decades and now is a good time to refinance your home before the rates climb higher. Before choosing a lender to refinance your current mortgage, consider a few key factors and analyze your options. Your current interest rate, the length of time you plan to stay in your home, your credit rating, and the value of your home are all important issues to consider when looking at refinancing your house. Let’s concentrate on your credit score and how it effects refinancing.

A credit score or rating is something that every adult with a credit report has. This is commonly known as a FICO score, which is a credit score developed by Fair Isaac & Co. Credit scoring. This is a method of determining the likelihood that credit users will pay their bills. Lenders analyze your credit scores to determine whether or not to approve a home mortgage, a car purchase and nearly all other types of loans. Your credit score can have a huge impact upon your future and those with a good credit rating can look forward to a far brighter financial future than those with poor credit scores. So, how exactly is your credit score determined?

Before lending you money, creditors want to determine how much of a risk you are—in other words, how likely you are to repay the money they loan you. Credit scores help them do that, and the higher your score, the less risk they feel you’ll be. The rewards of raising your score speak directly to your wallet: You’ll qualify for more loans and be offered better interest rates. Your credit report contains a range of information relating to your financial situation, including the money you owe or have borrowed, your repayment habits, any missed or late payments, court judgments and bankruptcies, any loan applications you have made, and any loan refusals. Your credit rating can be affected adversely in many ways, and this can include missing or late payments, as well as being turned down for credit by lenders and merchants.

Credit Scoring Analyzes Five Areas of Your Credit Report Read more of this >>

Owning a home is the ultimate American dream. It is also the best way to build wealth for yourself and for future generations. Having bad credit should not prevent you from owning a piece of the American dream.

If you have poor credit – you are not alone. It is estimated that approximately 30 million Americans struggle with bad credit from having excessive credit card debt and not paying their bills on time. Unfortunately, rising medical costs, job layoffs, ridiculous gas prices and escalating home prices are exacerbating the rate at which Americans are falling into the bad credit pit.

Without a doubt, no other process renders you more ashamed and more aware of your bad credit score than the act of purchasing a home. Buying a house with good credit is horrendous enough, for first time homebuyers. For people with bad credit, it is an act of congress but it need not be. Here are four easy ways to buy a house with bad credit.

Keep it in the family. Get a relative who has good credit to purchase the house on your behalf. A family member with a solid credit history, will get a good interest rate thereby making your monthly mortgage payments more affordable. You will also get some exposure to the home buying process without being overwhelmed.After your relative closes on the house, you must take over the mortgage payments, insurance and taxes. This will ensure that you get the tax benefits of being a home owner right away. Arrange for your relative to sign a “Grant Deed,” to add your name to the title of the property. This makes you a co-owner of the house. Read more of this >>