Many of us have less-than-perfect credit scores. If you’ve been turned down after trying to obtain an equity loan with bad credit, or a mortgage at your bank, you know how devastating that can feel. However, banks are bound by rigid regulations that require clients to meet various criteria before they can be allowed to access financing. The risk-adverse nature of major financial institutions means that any kind of red flag on a credit report, from an unpaid tax bill to a past bankruptcy, can result in your application being rejected.

 

 

However, private lenders are more willing to overlook a client’s credit history, as long as he or she has sufficient equity in a home. Most private lenders will finance a short-term loan or mortgage using the client’s home equity as collateral. This means that obtaining an equity loan with bad credit is possible!

 

These loans often have higher interest rates than comparable loans from banks, but not always. In order to access a private mortgage or loan, it’s best to work with a private mortgage broker. A broker will assess your application and put together a package that will be attractive to investors. He or she can often match a borrower with a compatible lender quickly, providing the client with necessary cash flow without delay.

 

Bad credit ratings do not have to limit your access to financing. Consult a private mortgage broker to learn more about the options available to you.