How do I get a mortgage with bad credit?

December 1, 2020

1 thought on “How do I get a mortgage with bad credit?”

  1. Your bad credit may be because of a job loss or illness, but you can still get back on the right track to owning your home. The first step is to determine your exact credit score to determine whether you can still qualify for a normal mortgage or whether you will need a bad credit mortgage.

    If you have bad credit, you can still get a mortgage, but it will attract higher interest rates, meaning you may have to pay higher amounts as monthly mortgage payments. 

    It is better to improve your credit score first to get a lower mortgage rate. You can do this by paying your bills on time and staying within your credit limit and paying your credit card on time. You can also save to afford a larger down payment, above the required 5%. Any amount above 20% not only lowers the interest rate you will pay but will also eliminate the insurance payment required for the mortgage.

    While banks may not approve your mortgage if your credit score is below 600, a mortgage broker may find a deal for you from a bad credit mortgage lender. 

    Also, a co-signer such as a partner or your parents can increase your maximum affordability.

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