Inspite of bad credit you can borrow if you are homeowner


by Steve C clark - Date: 2007-02-13 - Word Count: 525 Share This!

Usually, it is a common perception that if you have bad credit, you cannot borrow money from any lenders. However, people do not know that bad credit does not mean end of the world. If you are a homeowner, you can borrow loan inspite of bad credit.

Bad credit homeowner loans: Bad Credit and its affect
When you borrow a loan from any lender and you start paying a monthly fixed amount towards the capital loan and interest, your record of payment till the completion of the loan is given a certain numeric points. For example, if you made a late payment, a certain negative score is given to you.

Similarly, if you make partial payment, you get certain negative score and if you continuously pay your monthly installment in time, a certain positive score is given. At the end, you get a total score called credit score, which gives the record of your payment. By going through your credit score, lenders can make out whether you paid your monthly installment in time or defaulted or you successfully completed your previous loan. Therefore, if you have a bad credit, there is less chance of your getting any loan.

Bad credit homeowner loans: The Advantage of Homeowner
At time, it is not the scarcity of money, which might have caused bad credit to you, but cause may be beyond your control due to which you had failed to deposit the installment in time and the lenders also understand such practical problem.

If you are homeowner, lenders do not take into account your bad credit. They are more than willing to offer a loan to a homeowner inspite of bad credit. It is because of the reduced risk if the borrower is a homeowner.

In case of a bad credit homeownerloans, you can offer you home as security against the money borrowed by you. In case of lender, they get full legal right over the collateral offered to them by borrower and therefore they can sell the asset to recover their loan if borrower defaults in making payments. Therefore, inspite of bad credit, there is no risk for lenders in offering a loan to a homeowner because in this case the home acts as security against loan.

Bad credit homeowner loans: Advantages to borrower
In case of a bad credit homeowner loan, the borrower also gets multiple advantages. For example, since the lender has least or no risk in offering loan to borrower due to the collateral offered, lender charges less rate of interest compared to loan given to a non-homeowner.

Therefore, for bad credit homeowner, the loan comes at a cheaper rate. Similarly, a homeowner borrower gets loan amount equivalent up to 90% of the cost of the home. However, in addition to homeownership, loan amount, rate of interest and duration of payment also depend on several other factors such as permanent source of income, employment or self-employment, references etc


Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances.He writes on loans. His ideas can help you rejuvenate your money.To find Secured homeowner loans,bad credit homeowner loans,online homeowner loans visit http://www.easyhomeownerloans.co.uk

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