Which Lenders Offer Bad Credit Mortgages?

Which Lenders Offer Bad Credit Mortgages

Lenders look at the credit scores to determine whether the people applying for a loan can be trusted to pay back the mortgage they are applying for. The better the score, the higher the chances of landing that loan. A bad score, on the other hand, can mean an outright rejection.

But not all lenders do that. Wondering which lenders offer bad credit mortgages? We’ve come up with a list for you! They are the ones most willing to take a leap of faith where others may already be running the other way.

How My Credit Score Work in My Loan?

Different kinds of loans will require different levels of credit scores. Those that are backed by the government would usually have a lower requirement compared to the usual mortgages available on the market.

Lenders also have set up loan terms that are determined by your credit score. Even when you have a score that meets the minimum, you could receive an offer that has a higher down payment and stiffer interests and fees.

You may get better options if you improve your credit score before you apply. Read on to find out which lender offer bad credit mortgages.

Government-backed Loans

These are lending programs that allow lenders the means to give loans to borrowers with poor credit history. The lenders are given protection by the program against payment defaults.

  • FHA Mortgage

This allows a loan for credits scores that are as low as 500. A low score may mean a higher down payment though. Hike your score up before you apply to make it to the level with a more affordable down payment.

  • VA Loans

These are available for veterans and needs to work with a credit score of 580 at a minimum. Some lenders even require a score to be at 620. This type of loan allows a mortgage with no down payment, and their interest rates are also low.

  • USDA Home Loans

These are for those who belong to the low or moderate-income families. These are limited to areas that are identified by the USDA. USDA loans also offer no down payment. The minimum credit score is 640.

which lenders offer bad credit mortgages

Which Lenders Offer Bad Credit Mortgages?

A bad credit score does not necessarily kill your chances on a mortgage. Here are some of your options. One of them might just have exactly what you need.

  • Carrington Mortgage Services

This is a private lending company that also offers government-backed loans. Their minimum credit score requirement is also low. They are available in most states, and they have down payment assistance programs.

  • New American Funding

This company uses manual underwriting to evaluate those who are applying for a loan. Their services can be acquired online.

  • Network Capital Funding Corporation

Their minimum score required is 600. The minimum down payment is at 5%. They also have FHA, VA, and USDA loans, among others. They also provide good customer support.

  • Connexus Credit Union

They evaluate alternative credit data which can improve your rating. This company offers conventional loans with varied terms. Which lenders offer bad credit mortgages? We hope to have helped you answer this question.

Resorting to these lenders might just be the best decision you’ll make, so don’t give up just yet. It’s never too late to start building up good credit scores.

James Willaims
 

Hey There, James here. I am the co-founder and editor of this site. I have over 10 years experience in business and 5 in the credit repair world

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