Bad Credit Rehab Loans

Hey, let’s talk about bad credit rehab loans. First of all, what is bad credit? As a lender’s perspective we are seeing credit all over the board. So, we have seen credit size I mean 800 credit scores. We have seen credit worse as negligible meaning that it is so low you can’t even get a score. So the interesting thing is we finance on both ends of the spectrum. As a leading hard money lenders virginia, we have financed the people who have negligible credit or no credit and we have financed the people who have excellent 800 credit scores and every thing in between.

When it comes to bad credit financing the first question is going to be what bad credit is? When does my credit become bad? I think that you will find that most people would say over 620 credit score is decent credit, over 700 credit score is good credit and 619 and under is probably bad credit. When you are looking for a bad credit hard money lender in Virginia, you don’t want to turn to a lender that is really hard money lender not some one that is posing a wolf in sheep’s clothing but some one that really looks at the asset of the property not based upon you as an individual. If you have bad credit i.e. fewer than 619 and you are looking for a hard money loan, then there are hard money lenders that will lend to you regardless of credit but they want to make sure that you don’t have any judgments. If you have a judgment meaning that you owe some money to someone and that has gone before a judge and judge made a ruling and judgment whether you appeared in court or not. If you didn’t appear, it is an automatic judgment in most cases. If you did appear and you lost then the judge is going to sign some thing as well.

If there is a judgment on your credit report you are going to have a problem getting a loan regardless anything. If you don’t have a judgment even if your credit scores are terrible i.e. under 619, you can get a hard money loan if you chose a hard money lender in Virginia that is willing to lend based upon the assets of the property. So when it comes to getting a bad credit loan it can be done and you can get a loan regardless of your credit, however, as long as you don’t have judgments. Let me talk a minute what judgments are? Judgments like we talked about is when a judge would sign and said that the money is owed from you to some one else. What a judge is going to do is that it is going to attach to the property. So, if you go and buy a piece of property that judgment is then going to attach with the property. Let’s say you buy a property for $100,000 and your plan is to turn around sell that property and you plan on making a $15,000 profit on that.

If you have judgment for $15,000 and hard money lender in Virginia lent you the money for that $100,000 purchase that $15,000 judgment is going to attach to the property, which basically eats up all your profit margin. So, that is going to attach with the property and you have to get paid before, first hard money lender gets paid and that will attach to the property and then they can foreclose and it turns into issues. So if you got judgment and you have a bad credit and you are looking for a loan then you are not going to find any company like hard money loans virginia that is going to be willing to do a loan with you.