Bad Credit Mortgage Loans

Generally speaking, many people have a pretty good idea of where they sit credit wise. If you think you have bad credit, you probably do. But there are various levels of bad credit. Think mildly damaged, to seriously damaged. Mildly damaged may be a few late payments a few years ago, while seriously damaged may be a recent foreclosure or bankruptcy.

Bad credit loans were always hard to get, but since the real estate collapse, they are virtually impossible to find. You may read on the internet about companies offering bad credit loan. Most of it is simply outdated web pages. Realistically, if you have bad credit, you need to improve your credit before applying for a mortgage loan.

Might be able to get a loan:

  • Negative items are old
  • Good re-established credit history
  • Credit score over 640 (middle score)

Will likely be denied:

  • Foreclosure or short-sale less than 3-years old
  • Bankruptcy less than 2 years since discharge
  • Lots of late payments
  • Credit score below 620

If you think you fit the "might be able to get a loan" category, by all means, fill out an application. Otherwise, you need to take the steps to improve your credit. Visit our credit report information pages for tips on how to start improving your credit score.

Finally, remember this. If you do nothing, nothing will change.  if you do something, something will change.