You may think that getting a mortgage if you have bad credit is nearly impossible, after all, how can you get a mortgage when you don’t meet the traditional criteria for qualifying? However, there are several methods you can use to get a home loan even if you have a poor credit history.
How to Get a Mortgage Even with Bad Credit
If you have bad credit, you don’t need to worry about getting a mortgage, there are ways to get a home loan with poor credit. All you need to do is follow these steps:
- Find out whether your credit score qualifies
FHA loans are government-backed mortgages that allow people with low credit scores and no down payment to borrow money, if your FHA score meets the minimum requirements, then this is your best bet.
- Find out if your bank will offer a mortgage
Your bank may not require a high credit score to grant you a mortgage if you have enough for a down payment or if it can work with other factors like income and assets. Contact your banker and ask them what they need in order for you to get approved for a mortgage loan.
- Apply for an individual loan from private lenders
Check site for home loan easton for loans from private lenders who specialize in difficult situations like bad credit histories or low incomes, you might be able to find someone willing to give you an individual home loan even if you have a bad credit history.
How to Get a Home Loan as a Non-occupier
One of the ways you can get a mortgage even if you have bad credit is to become a non-occupier, a non-occupier is someone who will not be living in the home they are buying, but rather renting out their home to tenants for one or more days per week.
It’s important to note that you must have an income that is greater than your expenses for the property and it must be your primary residence; otherwise, you may face some challenges with acquiring a mortgage.
How to Get a Mortgage if You Have No Credit
If you have a low credit score, it’s not impossible to get a mortgage, there are several ways that you can finance your home even if you have no credit.
However, the challenge is finding an approved lender who is willing to work with you, before you start looking for lenders, let’s take a look at what criteria they’re going to be looking for when considering whether or not they want to work with you:
- What is your income?
- Are you employed?
- How much money do you make?
- What is your debt history like?
- Do you have any criminal history?
- Are there any other extenuating factors that might affect your ability to pay back the loan?
How to Secure a Home Loan Even with Very Bad Credit
If you have bad credit or very bad credit, it doesn’t mean that you can’t get a mortgage, there are several banks and other lenders who will still provide you with a home loan.
The only caveat is that you may need to use a special type of loan, these loans are created specifically for individuals with bad credit and they come at a higher interest rate than traditional mortgages.