Introduction
Purchasing a home is a dream that many people aspire to achieve. However, for those with bad credit, the process of obtaining a mortgage can be daunting. But don’t worry, there are plenty of home mortgage lenders that specialize in providing loans to those with bad credit. In this article, we will discuss the top home mortgage lenders for bad credit.
What is Bad Credit?
Before we dive into the top home mortgage lenders for bad credit, it’s essential to understand what bad credit is. Bad credit refers to a low credit score, which can result from missed payments, defaulting on loans, or bankruptcy. A credit score below 580 is considered poor, and banks and lenders are unlikely to approve a mortgage to someone with bad credit.
Top Home Mortgage Lenders for Bad Credit
1. Quicken Loans: Quicken Loans is one of the top home mortgage lenders for bad credit. They offer a variety of mortgage options, including FHA loans, VA loans, and conventional loans. They also have a program called the “YOURgage,” which allows borrowers to customize their loan term and payment.2. New American Funding: New American Funding offers a range of mortgage options for those with bad credit, including FHA loans, VA loans, and USDA loans. They also have a program called the “Homeowner’s Access,” which provides down payment assistance and other benefits to low-income borrowers.3. Carrington Mortgage Services: Carrington Mortgage Services specializes in providing loans to those with bad credit. They offer FHA loans, VA loans, and conventional loans, and they also have a program called the “Flexible Advantage,” which allows borrowers to choose their payment date and payment amount.4. Freedom Mortgage: Freedom Mortgage is another top home mortgage lender for bad credit. They offer FHA loans, VA loans, and conventional loans, and they also have a program called the “Fresh Start” program, which is designed for borrowers with a low credit score.
Benefits of Using a Home Mortgage Lender for Bad Credit
Using a home mortgage lender that specializes in providing loans to those with bad credit can have several benefits. Firstly, these lenders are more likely to approve a mortgage application, even with a low credit score. Secondly, they may offer more flexible loan terms and payment options. Lastly, they may offer down payment assistance and other benefits to help make homeownership more affordable.
Conclusion
In conclusion, obtaining a mortgage with bad credit can be challenging, but it’s not impossible. There are plenty of home mortgage lenders that specialize in providing loans to those with bad credit. Quicken Loans, New American Funding, Carrington Mortgage Services, and Freedom Mortgage are all top home mortgage lenders for bad credit. Remember to do your research and shop around to find the best mortgage option for you.