What Are The Restrictions On Bad Credit Mortgages

But before you opt for this financial solution, you need to determine if there are any restrictions on bad credit mortgages. If yes, what are they and how to overcome those limitations? Let us have a look at these restrictions as follows:

• Loan amount offered

The first restriction is on the loan amount. There is a certain limit on the amount which you can borrow, for example in United States, a borrower with bad credit can be offered with a financial aid of up to $1,500. Being a debtor with bad credit score, you won’t get money beyond this value.                                                    

• Loan amount approved

Besides this, there is one more limitation of bad credit loan and it is related to the amount of the loan that the lending company or any other lender will approve. Though qualifying for a bad credit mortgage does not require you to meet all the eligibility criteria of a traditional loan; however the amount of loan that the lending organization will approve is decided on the basis of your monthly income. As per the normal lending procedure, the credit score played a pivotal role in deciding whether the borrower is allowed a loan but this criterion is put aside for the bad credit mortgages.