There are different loan programmes for people who want to buy a home but don't have the best credit. If you have bad credit, you need to find the right lender or broker to get a good home loan. Many first-time buyers don't know much about the different kinds of mortgages. So, many people think they need a down payment and can't get approved if they have bad credit. But a lot of lenders offer 100% mortgage financing on loans for people with bad credit.
How to Get Approved Even if You Have Bad Credit
There are different loan programmes for people who want to buy a home but don't have the best credit. If you have bad credit, you need to find the right lender or broker to get a good home loan. Many first-time buyers don't know much about the different kinds of mortgages. So, many people think they need a down payment and can't get approved if they have bad credit. But a lot of lenders offer 100% mortgage financing on loans for people with bad credit.
How to Get a Loan Even if You Have Bad Credit
Even if you have bad credit, it's not hard to get a home loan. In fact, people with low credit scores buy homes every day. The key to getting a home loan even if you have bad credit is to apply with lenders who specialise in these kinds of loans.
Subprime mortgage lenders offer different kinds of home loans for people with bad credit. There are loans that help with the down payment or closing costs, loans for people who work for themselves, and so on. Buyers should get quotes from subprime lenders instead of applying with a mortgage company or bank. Most of the time, the terms and rates are better.
Subprime Mortgage Loans
Subprime loans are great for people who want to buy a home but have no credit history, just went bankrupt, or have been foreclosed on. If your credit score is low, you won't be able to get prime rates. Still, it is possible to get a mortgage with rates that are fair.
Most traditional mortgage lenders want you to have worked for two years in a row, but for subprime loans, you only need to have worked for one year. There are some subprime loans that don't offer full financing. So, buyers may need cash for a down payment and the closing.
100 percent Mortgage Financing
If you use a mortgage broker, they can put you in touch with subprime lenders who will give you a loan even if you have bad credit. In some cases, you may be able to get 103% financing. With the second choice, you get help paying for closing costs and other fees.
