Overview Of Bad Credit Mortgage Lenders
Your credit rating tells mortgage lenders how likely you are to repay the money you borrowed. A high score sends the right signals, while a bad credit score, sometimes referred to as “bad credit,” can keep you from getting approved. When it comes to home buying, bad credit generally falls below 620.
The credit required to buy a home depends on the type of loan. Government-backed lending programs—FHA, VA, and USDA—generally have lower credit requirements than traditional mortgage. But it is the lender who ultimately decides what the minimum credit rating will be for each loan product.
The Lender considers more than just creditworthiness when evaluating an applicant. If your score is at or near a lender’s minimum, they might ask for a larger down payment, charge a higher interest rate, or ask you to pay more fees.
