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California sub prime mortgage refinance rates

Do You Qualify for a Sub Prime Mortgage?

Loans for consumers with poor credit are technically referred to as sub prime mortgages. These loans have a higher fee structure, as they are a higher risk to the lender. If you are struggling with a poor credit history, however, a sub prime mortgage may be for you. These bad credit loans give borrowers a chance to buy a home or refinance, even if they have been turned down for a loan in the past.

Do You Qualify for a Sub Prime Mortgage?

The basic idea behind sub prime mortgages is to provide a borrower a chance to improve their credit score and prove that they are a good credit risk. After establishing a good credit history with the lender, and making payments regularly for two to three years, the borrower is then eligible to refinance their mortgage at a better rate. You qualify for a sub prime mortgage if you have a certain credit score, or a history of other financial problems.

You are also eligible for a sub prime mortgage if you have declared bankruptcy in the last three years, or had a foreclosure in the last four years. If either of these events has occurred in your recent financial past, don’t despair. It may still be possible for you to get a loan for your dream home, through a sub prime mortgage program. Instead of being ashamed of these events, enable yourself to move past them and improve your credit score in the process.

Do You Qualify for a Sub Prime Mortgage?

Do you have collection accounts, judgments, or liens? Do you have credit accounts that have been 30,60, or even 90 days past due in the last few years? If this situation applies to you, find out what interest rates are available to you through a sub prime mortgage program. These rates may be higher than those of a conventional loan, but you will be eligible to finance after making a certain number of payments on time. This is a great way to begin to improve your credit history.

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