Welcome to

Bad Credit Mortgages in Alabama

When you’re buying a home in Alabama, there are a few things that you need to know. First, the median price of a home in Alabama is approximately $150,000. Homes in Alabama appreciate at one-half the rate of national average home appreciation. In many parts of Alabama, homes cost more than the average family can afford. This can make things very difficult on a borrower with bad credit or a bankruptcy. This article offers advice on obtaining a bad credit or after bankruptcy home loan in Alabama:

Waiting Two Years Earns You Better Interest Rates
If you need to apply for a mortgage earlier than two years after the date that your bankruptcy went through, you’ll likely get approved; however, your interest rates will be a lot higher than they would be if you wait two years. After two years, most lenders will see you as less of a risk, and you will qualify for much better mortgage terms.

A Bigger Down Payment Makes You a More Qualified Borrower
When you apply for a mortgage loan, your lender looks at something called your LTV ratio. LTV is the amount of money you are borrowing divided by the value of your home. For example, if your home is worth $100,000, and you are borrowing $90,000, then your LTV is 90%. 100% LTV’s are generally reserved for borrowers with near-perfect credit. However, the lower your LTV is, the more likely you will get approved for your mortgage. Most lenders rarely decline loans with an LTV at or lower than 80%.

Some Lenders Specialize In Bad-Credit/After-Bankruptcy Mortgages
Some lenders specialize in loaning to people with either bad credit or past bankruptcies. These lenders will not view you as more of a risk than their other borrowers because all of their borrowers are in the same situation as you are. Your best bet is to shop online and compare interest rates and terms between different lenders. This way you can be sure that you are getting the best deal.

Here are some of our recommended lenders for people with credit problems or a past bankruptcy: