Home Loans for Bad Credit and a Low-Credit Score
Mortgage brokers are contacted to find home loans for bad credit scenarios.
Many borrowers are missing out on home-buying opportunities for people with imperfect credit.
Bad credit mortgage loans are available for borrowers with below-average credit scores.
Bad Credit Mortgage Programs
Most mortgage originators can find a home loan for borrowers with excellent credit.
With great credit, a lender is potentially exposed to less risk, while bad credit could signal major risk for a mortgage lender.
It’s important to know that slow payments or derogatory accounts may be improved.
Since there are situations in life, where a job loss or medical expenses can create some financial challenges, bad credit mortgage programs are available in AZ, CA and CO.
Working with a mortgage lending expert could improve your odds of success toward getting a home loan with credit blemishes.
Requirements for Home Loans With Bad Credit
Specific mortgage requirements vary among lenders and loan programs.
Certain home loans for bad credit may require you to make a larger down payment toward a purchase or to have more home equity for a refinance.
Popular mortgage loan programs require a 620 credit score or greater.
Borrowers who can make a 10% down payment may qualify for a home loan with a 500 credit score.
You can obtain your free credit report via the Annual Credit Report website.
The items shown below may be helpful toward securing a home loan for bad credit:
A solid work history for two years or greater.
Timely housing payments for 24 months (at least 12 months).
12 months of bank statements reflecting qualifying income for all debts.
Savings or retirement funds to cover 24 months of mortgage payments.
A co-borrower with excellent credit and qualifying income.
An explanation letter that describes the circumstances which created your credit challenges and what has changed to maintain on time payments.
Receipts for paid debts or collection accounts.
Low debt-to-income ratio.
Why Contact a Mortgage Broker?
If you’re ready to buy a home with challenging credit or plan to purchase in the near future, help is available to assist you along your home-buying journey.
It’s wise to speak with a licensed mortgage broker for home loans in Arizona, California and Colorado.
While your banker or credit union representative could provide information about improving your credit and debt management, they are largely limited to in-house loan programs.
Banks are typically reluctant to issue home loans for bad credit purchase transactions.
A mortgage broker maintains relationships with many banks and specialty lenders who offer alternative financing for borrowers with various financial challenges.
Samantha Cooley, a mortgage broker with Mindful Money has access to dozens of lenders and hundreds of loan programs.
Beyond her relationships with top mortgage lenders, Samantha maintains a 5-star approval rating from a growing list of satisfied customers.
Schedule a call with Sam today, she offers honest and unbiased lending solutions.