If you have terrible credit and are in need of a lender to finance your mortgage you do have options. Sub prime lenders have specifically marketed to borrowers with terrible credit and offer purchase and refinance mortgages to terrible credit borrowers. Although almost all sub prime lenders require at least a credit score of 500 to qualify for a loan.
If you have terrible credit and own a home, you should obtain a copy of your credit report and review it with a mortgage professional. Check your report for errors or inaccurate information. Many times you can raise your credit score or devise a plan to improve your credit by reviewing your complete credit history.
Its important to learn to avoid the habits that caused poor credit to begin with. Ask your preferred Mortgage Professional which items on your credit history are most damaging to your FICO. It takes time to turn bad credit around, but the results will save you thousands on your next home loan.
A professional mortgage advisor can also help identify the steps involved in verifying and resolving credit issues, especially where inaccuracies are involved.
The main factors for lenders with terrible credit are your equity and ability to repay. There are programs for borrowers with terrible credit as long as you have at least 25% equity in your home. You will need to write a letter of explanation to explain your credit history and why you now feel you can make your payments.
Don't let Terrible credit deter you from applying for a mortgage. Many lenders have programs that are short-term; allowing ample time to help rebuild your credit by adding positive trade lines, so in the near future, better rate/payment loans will be available to you with those improved scores.
If you are in need of a lender for your terrible credit contact a mortgage broker. Mortgage broker's will have access to numerous lenders and may be able to find a loan for your situation.