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Who Provides Low Credit Score Loans for Homes?

Published by julia | Filed under Buyer / Seller Tips, Finance, Miscellaneous, Real Estate

With the current real estate market, it seems like there is nowhere to go for people who need low credit score loans for homes. Lenders have definitely tightened up their lending requirements, and the days of being able to get a $200,000 loan with a 500 credit score and no money down are long gone. If you have low credit scores, you’re going to have a harder time finding a home loan than someone who has a higher score. However, this does not mean that your dream of home ownership is in vain. Far from it, in fact.

There are still a few sub-prime lenders out there who will work with you on obtaining low credit score loans for homes. However, unlike in the past, you don’t have to worry about these lenders being unscrupulous, because federal regulations have tightened up a lot on these lenders. They will still offer you a loan as long as you meet certain requirements, but they will be trustworthy and up front with you, unlike a few years ago when they would tell you anything you wanted to hear just to get your money.

The best place to start looking for a home loan if you have poor credit is online. You can start by doing a Google search for “bad credit mortgages” and see what results you get. Carefully examine the companies who say they offer these loans, and then do some research on them on websites like the Better Business Bureau and Rip Off Report. You want to be sure you choose a company that is reputable to handle your mortgage needs.

Once you find a company that seems like it may be a good fit, find out what their minimum credit requirements are for loaning mortgage money. You will find that most lenders in the sub-prime market have a credit score of about 600 as a minimum, though a few may go down to 580 or even 530, but you can expect to pay higher interest. The point is, if you need low credit score loans for homes, you can get them. You just need to do your research.