Home » Bad Credit Mortgages: the Definitive Guide to Qualifying

Bad Credit Mortgages: the Definitive Guide to Qualifying

If you have bad credit and are looking for a mortgage, the first step is to get educated. There are many different mortgages with varying rates and terms, so it’s important to know what you’re looking for before making any decisions. One thing that can help your chances of qualifying is obtaining a co-signer. This article will tell you everything that we know about bad credit mortgages and how they work.


Co-signers Improve Your Chances Of Qualifying For A Mortgage With Bad Credit

A co-signer can improve your chances of qualifying for a bad credit loan. This is because lenders will often take more time to review loans with less than stellar credit history. This means it can become harder to get approved if you have minimal or no income source. With a co-signer who does meet all standard requirements, though, you’ll be able to qualify much faster – in some cases without needing additional documentation beyond what they provide.


You Can Apply For A Mortgage With Bad Credit When You Have An Income Source


Income is usually the biggest factor in being approved for a loan, and it’s also what lenders use to determine your ability to repay any debt. This means that if you don’t have a job or other regular sources of income, then this could pose a problem in qualifying even though you may have good payment history on all outstanding debts. However, some lenders will allow borrowers who are unemployed but still receive payments from Social Security or another government program to qualify for loans without needing proof of employment.


Shop Around

It would be best if you shopped around to determine which lenders will approve you for a loan, even with your less-than-perfect credit history. Whether or not a lender is willing to work with borrowers with bad credit scores, each has its underwriting criteria and required documentation. Lenders also vary in the interest rates they charge, as well as their fees and other terms.


Make A List Of Your Debts

This will not only help you determine how much money you can borrow, but it’s also going to be essential when applying for a loan. To qualify for a bad credit mortgage, lenders require that borrowers put down at least 20 per cent as a down payment on their new home. This means they need to know exactly what kind of debt load is ahead if they have trouble making payments towards the end of the month.


Get A Copy Of Your Credit Report

For those with bad credit, getting approved for a mortgage can be extremely difficult. The first step to overcoming this obstacle is obtaining a copy of your Credit Report. Lenders will review these scores as part of their underwriting process, which means it’s essential that you have accurate information on file to maximize your chances of being approved. Keep in mind that any errors or misinformation may also lower your score further, making it harder to get


Review Your Credit Score

There are several ways to improve your credit score. Generally speaking, the higher it is, the better chance you’ll obtain approval for an unsecured mortgage which can be very helpful in getting approved even if there are already existing mortgages on file against your name.

Any negative information such as past-due accounts or collections will significantly impact one’s credit score. This is why if there are any errors in this area of your report, it may be in your best interest to address them before applying for financing.



Bad credit mortgages are available to most applicants. If you have past-due loans or accounts, there is no need to worry because most lenders will offer a suitable alternative product to meet your financial needs.


Elijah Adam

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