Acquiring an Investor Mortgage

These days, it is very difficult to acquire an investor mortgage if you have less than desirable credit. For some, this can pose a problem since it locks them out of acquiring much needed mortgages. This has the unfortunate ripple effect of cutting them out of excellent investment opportunities. So, a problem may exist with an emphasis on the word “may”. You see, when a problem can be fixed then it really is not a problem.
And, yes, you can fix problems with poor credit.

To a great extent, you cannot blame lending institutions for raising their standards on providing an investor mortgage. The vast array of foreclosures across the nation indicates that many lending institutions are not receiving repayments on the loans they have issues. This necessitates the need to only issue an investor mortgage to those with solid credit ratings.

Some may turn to portfolio lenders when the banks turn them down. While portfolio lenders can be easier to deal with than traditional banks, they do want to get their money back! As such, even the most open-minded portfolio lender may be adverse to providing a loan to someone with poor credit. However, if you do have less than desirable credit, there are still options available.

Mainly, it becomes necessary to take steps to repair poor credit. When a bad credit rating is restored to one that is desirable, the ability to receive an investor mortgage increases dramatically. Of course, this brings about the question as to how one can go about repairing poor credit.

Thankfully, fixing poor credit is not as tough as some assume. There are a number of steps the borrower take on his own to fix any problems that may exist on a credit history. If you have late payments on a credit card, you can petition the credit card company to remove the negative information. If you defaulted on payments in the past, you can discuss settlement options to pay a portion of the debt with the understanding the “black mark” will be removed from the credit rating. Then, there is always the option of hiring a service to represent you in the repair process. Ultimately, if you are able to repair your credit, you will find investor mortgage loans much easier to acquire.

Now, some may wonder if a portfolio lender might hold a previous poor credit rating against the borrower. Well, if your current credit rating is fine then there really is nothing precluding the lender from issuing portfolio loans or an investor mortgage. So, do not worry about what your credit rating used to be. Worry about what it is at the present time. If it needs to be repaired, take the necessary repair steps. If it is fine, then do not fret over it. Simple apply for an investor mortgage. The odds are in your favor that it will be approved.

by Susan Lassiter-Lyons - March 21, 2009

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Source: http://www.portfolioloanblueprint.com