There are three major factors that determine what kind of loan borrowers with poor credit can get. The first is the size of the loan they are looking for.

Mortgage lenders who borrow to people with bad credit are called Sub Prime mortgage brokers/lenders. A mortgage for a borrower with bad credit will carry a higher interest rate then a mortgage for a borrower with good credit. Recently Sub Prime rates have increased due to the increase in sub prime mortgage loan default. If you need to secure a mortgage loan for bad credit think of it as a temporary band aid loan until your credit score increases.

When working with mortgaeg lenders, damaged credit experience counts. If your mortgage professional isn't experienced then several things can go wrong. Damaged credit means there are less lenders that will be willing to make a loan. If your mortgage professional isn't seasoned then you might qualify for a loan and be told there's nothing out there for you.

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