Credit problems can happen to anyone. When you do have credit problems it can become difficult for you to secure a mortgage for your dream home. With B lenders, this problem has now become easier to solve. The lenders provide mortgages without good credit or an income. They offer flexible mortgage solutions to the borrower. If you are looking into taking a mortgage you must approach a Credited Mortgage Broker. They will help you to find specialized solutions for your financial needs. When you are planning to take a mortgage, you must get the most reasonable rates. When you are making financial decisions, you must take a calculated one. We are listing the advantages and disadvantages of B Lender Mortgage.
Below are some of the most common advantages which are associated with B lender mortgage. However, there are many other advantages too but they differ from creditor to creditor, depending on whom you choose. The common advantages are:
Alternate Solution: When you are applying for a mortgage from traditional lenders like the bank, many challenges arise. For example, they look into your existing mortgage arrears, the type of income you have, credit score, whether you have filed for bankruptcies in the past, high debt servicing ratio and unconventional down payment sources. The B lender provides you with solutions when you are faced with such challenges.
Short Term Repayment: A B Lender mortgage has a term of about a year to three months, whereas a mortgage is usually about 5 years.
Easier on the Rules: While you are applying for a mortgage from a B lender, the rules that are there in place are a lot easier as compared to the traditional lenders. Getting a B lender mortgage is a lot easier. You don’t have to worry about having a non-conventional source of income and they accept unconventional forms of down payments. However, the interest rate might be higher but their leniency makes up for it.
Some of the main disadvantages of getting a B lender mortgage are:
Doing an Appraisal: To get a mortgage from a B lender, you need to get an appraisal on the property irrespective of whether the mortgage is for refinancing or purchasing. You need to get an appraisal for whatever type of mortgage that you get. This might seem exploitative but this is an extra closing cost that you would need to pay when you go to a B lender for a mortgage.
High Down payment amount: With a B lender mortgage you are required to pay at least 20% of the down payment. This requirement doesn’t cause a problem when you are looking to refinance. However, if you are purchasing a new property then paying 20% of the property price as a down payment can have a severe impact. Especially when you were planning to pay the minimal amount of either 5% or 10%.
Difficult to get information: It is more difficult to get information about the products from B lenders as they aren’t usually advertised.