Bad Credit Home Loans for Applicants with Adverse Credit

Bad credit home loans are the home loans specially created by Lenders for borrowers with an adverse credit history.  These borrowers are identified by the loan lenders as someone to whom lending can be a risky venture. While traditional banking institutions generally reject loan applications from such borrowers without a second thought, several non bank lenders that specialize in the area, provide easy to grab offers to these very people!

Acceptable bad credit history includes: –

• Tax debts
• Paid or Unpaid Defaults or Judgement’s
• Mortgage or loan arrears
• Discharged bankrupts or part 9 from 1 day discharged
• Unsecured debt consolidation (credit cards and personal loans)
• Low credit score

How to access bad credit home loans?

There are many lenders in the market today who offer home loans for bad credit at an attractive interest rate to the customers with an adverse credit history. These are licensed lenders called non conforming lenders. It is generally believed that bad credit home loans are offered at higher rates than the regular loans but not all bad credit home loans have high interest rates.

Bad credit home loans usually vary from case to case. They are assessed on the merit of each and every borrower depending on his credit history and location of security. Maximum loans are to 95% LVR on purchases and 90% LVR on refinances.

The lender assesses based on the following:

• How much the loan should be priced?
• What are the risks involved?
• Location of the security?
• Is the case of applicant justified?

Ways to assess bad credit home loans with minimum hassle: –


Presently, most of the lenders operating in the market offer home loans with bad credit at a very reasonable interest rate to the impaired applicants. Considering the growth in the bad credit home loans market many big players have entered the market in a big way making the interest rate and down payment highly competitive. Home loans for bad credit are a booming industry that has fulfilled the loan needs of many borrowers who were ineligible earlier to borrow in the light of the impaired credit history.