Regular loans and tips for handling “bad credit” cases
Loans for “residential” property
You may obtain loans for up to four foreclosure properties at a time to stay within the limits of residential property purchase. Commercial loans are for five units and more.
Lenders for house purchase
- Banks, credit unions, and insurance companies
- Private lending agencies
- Federal government agencies
Bad credit? How can you get around?
Due to layoffs and bad economic circumstances, some people fail to make payments on time. Many financial institutions are willing to extend loans to such people considering this fact of life. They are called sub-prime lenders. You may expect a higher interest rate. Interest cost won’t be a problem for you if you flip properties quickly.
One major difference in the real estate business is existence of collateral. Lending institutions do not depend on your signature but rather use your house as collateral in case you don’t pay.
Sub-prime loans are lower-rated loans extended to borrowers with damaged credit. After your successful buying and selling foreclosures at a profit, you may repair your poor credit in a short time.
Events that hurt personal credit history
Bankruptcy, charge offs, collection, repossession, mortgage loans, car loans, slow or late payments, past due payments, public record postings, excessive credit inquiries, loan rejections, lis pendends, and foreclosures.
Foreclosure loans are available as:
Keep in mind…