Mortgages for people with bad credit do exist. You may have heard that getting mortgage loans with poor credit history is impossible. Not true. While it’s very difficult to get a mortgage loan when you have bad credit, it is certainly not impossible to get one. However, you will have to look around to find one.
So, what sort of mortgage options do you have when the credit is bad?
Typically there are a few things you can do to get a mortgage in this situation. But it comes down to how much you are willing to pay and the sort of mortgage you are willing to get. The best situation is one where you put money down for the home. Giving a bank a very large down payment will ensure you get the mortgage regardless of your credit rating. The worse your credit, the larger the down payment needed.
In some cases though, you will have to cough up a significant portion of the home’s value if you want to go this route. Unfortunately, this means that most people out there will be unable to take advantage of this method.
Another option you have is to look at getting a bad credit or “subprime” loan. You can look at getting one of these loans from a bank. However, since the housing crash and economic recession, banks are no longer willing to give these loans out – not unless they are sure you are a good candidate. The other option is to look at an online bad credit lender who specializes in poor credit mortgages. You can find out more information online.