Having bad credit can make it difficult to secure a mortgage loan. However, there are mortgage lenders who work with bad credit and offer options to those with less than perfect credit scores. In this article, we will discuss some of the mortgage lenders who work with bad credit and the options they offer.
Quicken Loans
Quicken Loans is a well-known mortgage lender that offers a variety of loan options, including those for borrowers with bad credit. They offer FHA loans, which are government-backed loans that require a minimum credit score of 580. Additionally, they offer VA loans for veterans and active-duty military personnel with a minimum credit score of 620.
CitiMortgage
CitiMortgage is another lender that offers options for borrowers with bad credit. They offer FHA loans, VA loans, and conventional loans. They also have a program called HomeRun, which allows borrowers with a credit score of 620 or higher to qualify for a loan with a low down payment.
New American Funding
New American Funding is a lender that specializes in helping borrowers with bad credit. They offer FHA loans, VA loans, and conventional loans. They also have a program called Non-QM loans, which are designed for borrowers who do not meet the standard lending criteria.
PennyMac
PennyMac is a lender that offers FHA loans, VA loans, and conventional loans. They have a program called the Home Access Financial Program, which is designed for borrowers with bad credit. This program allows borrowers with a credit score of 580 or higher to qualify for a loan with a low down payment.
Carrington Mortgage Services
Carrington Mortgage Services is a lender that specializes in helping borrowers with bad credit. They offer FHA loans, VA loans, and conventional loans. They also have a program called the Carrington Flexible Advantage, which is designed for borrowers who do not meet the standard lending criteria.
How to Improve Your Chances of Getting Approved
While there are mortgage lenders who work with bad credit, it’s important to note that having bad credit can make it more difficult to get approved for a loan. Here are some tips to improve your chances of getting approved:
- Check your credit report for errors and dispute any inaccuracies
- Pay down your debts to lower your debt-to-income ratio
- Save up for a larger down payment to show lenders that you are financially responsible
- Get a co-signer with good credit
Conclusion
Securing a mortgage loan with bad credit can be challenging, but there are options available. It’s important to research different lenders and loan options to find the best fit for your financial situation. Additionally, taking steps to improve your credit score can increase your chances of getting approved for a loan.