It may sound funny saying Sub prime Mortgage. However it is going to have many benefits to anyone looking for a home loan.
A sub prime mortgage is going to have a higher interest rate than the other loans because people who need it usually have bad credit or a low credit score.
The higher interest rates do make people pay more for their home but there are also some benefits.
Some banks will offer a prime and sub prime mortgage due to the fact they know their community better and some jobs are not so great. The prime mortgages will need to ensure the monthly payments.
It may be frustrating or even embarrassing to go to a bank in your town and ask for a loan. This is why you might want to choose a sub prime lender.
One benefit of a sub prime mortgage is that you do not have to take time to raise your credit score before you can purchase. This can take years off your payments and building your credit and many do not have this kind of time.
Some may realize that they made late payments on certain bills and now they know how important paying on time is. Not everyone will have bad credit by not getting his or her bills paid on time.
There are wives and husbands that are just not responsible and they may hurt their partners credit even if they go through divorce. There are many cases where a divorce can destroy one or both of the partners credit rating requiring a lot of work to fix the problem. That is why it is good to try to work it out in a friendly manner so that both parties can get their lives back.
Using a sub prime mortgage can mean a new beginning for many home-buyers.