Can i get a home loan with bad credit

You might be wondering how to get a home loan with bad credit. Maybe you lost your job and couldn’t pay the bills. Or you went overboard on credit cards and while you can make your payments, it’s touch and go from month to month. Either way, you’re not deemed a good risk for a home mortgage, due to your situation.

But now you have a good job, and you’ve trimmed your bills down. You want to become a homeowner, but where can you get a mortgage? The banks don’t seem to want to do business with you, but you know that you’re responsible enough to take on a home loan. How can you get a mortgage with bad credit?

Home Loans and Credit Reporting Agencies
You’ve seen all the commercials about how to monitor the credit reporting agencies to make sure they don’t have incorrect information. If you have a low credit rating, it’s doubly important for you to make sure all the information on yours is accurate! You don’t want any misinformation to make it any harder to get a home loan.

In the United States, there are three major credit reporting agencies, and they do not always have the same information! That’s why it’s important to check all three agencies for accuracy; you never know which agency the lender uses when they pull your credit history.
How to Get a Home Loan with Bad Credit
After you have made sure your information is accurate with the credit reporting agencies, you need to get realistic with what you will be able to get for a mortgage. Here are some of the issues you might run into.

You might need a larger than normal down payment to secure your home loan. Gone are the days of 1% down payments. Prepare yourself for anywhere from 10% to 20% as your down payment. This helps to spread the risk, in the lender’s eyes. While they are taking a larger than usual risk in offering you a home mortgage, you will have to come up with more “instant equity” in the form of a down payment.




Traditional lenders like banks may not be willing to grant you a loan, but there are other lenders that specialize in finding mortgages for people with bad credit ratings. These lenders will look at your overall situation, and not just your score. A little searching online will reveal a wealth of such information.