How to get a mortgage with bad credit?

It is no secret that having bad credit is going to make it more difficult to get a mortgage. But that doesn’t mean that you won’t be able to get a mortgage at all. 

If you have had trouble getting a mortgage from a traditional lender, or you already know that your bad credit means that you won’t be able to qualify with a traditional lender, your first step should be to get in touch with a professional mortgage broker. Mortgage brokers work with a number of lenders both traditional and alternative and some of the lenders that they work with actually specializing in helping people with bad credit get mortgages. 

If you have damaged credit, there are still several options for getting a mortgage.

Alternative lenders or “B lenders” are often the first choice for mortgage brokers working with clients who have poor credit. Many B lenders specialize in helping people with poor credit get mortgages. Their interest rates are generally higher than traditional or “A lenders” but paying a little extra in interest now could be worth it if it helps you get into a home and starts repairing your credit. 

Another option for those with poor credit is to work with a private lender. This can be a company or investor but it can also be a friend or family member who simply wants to help you out. In either case, it is important that the lender is reputable and that all the proper legal documents are in place. Working with a professional mortgage broker can help ensure that everything is done the correct way.

A third alternative for those with bad credit is to enter into a rent to own agreement. This allows the person to rent the home they wish to buy while they work on building their credit and saving up for their down payment. 

Contact Matrix Mortgage Global today

If you’ve got bad credit, you don’t have to let that stop you from getting a mortgage and realizing your dream of becoming a homeowner. You do however, need a professional on your side who can show you your options and help you decide what option is best for you. 

Contact Matrix Mortgage Global today to learn more about bad credit mortgages or to schedule an appointment with one of our brokers.