The 8 Best Mortgage Lenders for Poor Credit
You might think having poor credit isn't common. Yet, that's far from the truth. About a third of Americans have credit scores under 601.
Popular credit bureaus such as Experian classify poor credit scores as 720 points or less. This number may vary depending on the credit reporting agency. These agencies take many factors into consideration to calculate your score.
Improving your credit scores may be difficult or near to impossible. You might've heard that you can't get a mortgage with poor credit. But, that isn't true.
You can buy your dream house with a credit score that's less than pretty. If your home loan application was denied, you shouldn't worry.
We've got you covered. We'll tell you all about the best mortgage lenders for poor credit. You should consult them to get the home loan for your dream home.
Here's your list to apply for a bad credit mortgage today.
1. Network Capital Funding Corporation
This lender is a great option if you are a borrower looking to take advantage of government programs such as FHA, VA, and USDA. They require a credit score of 600 or more to be eligible for their home loans.
Network Capital doesn't charge lender fees. Their down payment requirements are between 0 to 10 percent of the property value depending on your loan. You may submit a pre-qualification online to learn more about your eligibility.
2. Quicken Loans
If you are looking for a fast decision, this lender may be your best bet. They offer decisions within minutes. Their loan application is 100 percent online.
But, they have mortgage advisors on call and via chat that can walk you through the process and your options. Quicken Loans requires a credit score of at least 580.
Their loan terms are between 8 to 30 years. Quicken Loans offers reverse mortgages, FHA, VA, USDA, Fixed Rate Mortgages and even Jumbo Loans. Depending on your loan, this lender may require a down payment of 3 percent or more.
3. New American Funding
New American Funding is a great option for borrowers without a strong credit history. This lender uses manual underwriting to evaluate their loan applications. This company looks at more than just your credit score.
They offer a wide variety of loan options from conventional loans to interest only. This lender offers the option to apply and process your mortgage online. Also, New American Funding has mortgage advisors available on call.
You may be eligible for 0 down payment depending on your loan. Their loan terms are between 8 to 30 years in accordance with the requested loan. New American Funding asks for a credit score of at least 580.
4. J. G. Wentworth Home Lending, LLC
This lender offers fast and automated online loan processing. J.G. Wentworth requires a credit score of at least 580. Their loan terms are between 10 to 30 years depending on your loan.
Typical terms for their conventional loans are 10, 15, 20, 25 and 30 years. J.G. Wentworth provides loans to residents of all states except Hawaii, Missouri, Nevada, Montana, and New York.
This lender offers everything from conventional loans to home improvement mortgages. Their down payment requirements start at 3 percent of the property value.
5. Rocket Loans by Quicken Loans
In contrast with Quicken Loans, their application and processing are done 100 percent online, but there are no representatives to walk you through the process. They offer approval decisions within minutes. This lender allows you to lock your rate for up to 90 days.
Rocket Loans requires a credit score of at least 580 and down payments from 3 percent or more. This lender offers FHA, VA, USDA, among other loans. They don't offer home equity loans or HELOC.
6. Pacific Union Financial
This low credit score mortgage lender is the best option for borrowers with financial challenges such as bankruptcy, foreclosure, high income-debt ratios, among other situations. They require a credit score of at least 560.
Yet, this poor credit mortgage lender may approve your loan with a lower score depending on your situation and loan. Pacific Union Financial doesn't offer options to begin or complete your mortgage process online. This lender may require a down payment of 3 percent or more depending on your loan.
7. HomeBridge Financial Services
This lender offers government-backed loans such as FHA and VA for borrowers with credit scores as low as 550. HomeBridge only offers online rate quote requests. But, they have mortgage advisors available via telephone and chat.
This poor credit mortgage lender may charge origination fees depending on your loan. HomeBridge may require a down payment of at least 5 percent.
8. Vylla
Vylla is the best option for borrowers with credit scores as low as 500. This lender doesn't offer online pre-approval. But, you can apply, and track your mortgage loan application online.
They offer government-backed loans like FHA and VA. Vylla offers free rate locks and down payment assistance programs.
This lender may require a down payment of at least 3 percent depending on your loan. You may reach their mortgage advisors via chat and telephone.
Can You Get Approved by One of the Best Mortgage Lenders for Poor Credit?
Yes, you can get your home loan approved by one of the best mortgage lenders for poor credit. Don't believe the naysayers who say you won't get your dream house because of your credit score. It will come down to finding the right lender that wants to work with you and provides the best rates.
Before applying for your home loan, you should check your credit score. Maybe you learned about your credit score because a lender denied your loan application. If so, you should ask them to explain their reasons for denying your loan.
Your credit score or mortgage refusal shouldn't stop you from buying your dream house. If you applied for a home loan and received a denial letter due to your credit score, you should consult the lenders from our list. It's recommended to request several mortgage estimates to obtain the best offer and rates.
You should aim to request them within a 45-day window. If you do so, all the credit pulls will appear as only one inquiry of your report. Having one credit pull on your report instead of five will protect your credit score.
Are you considering applying for a mortgage but, have no credit? Read our guide to learn how to apply for your loan today.
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All loan terms are between you and the lender that may offer you short term credit. We have no access to the interest rate, loan duration, payment amounts, or annual percentage rate (APR). Not all lenders are able to offer you the amount you request. Annual percentage rate may be dictated by the laws of the state where you reside. This may limit your ability to access credit. All lending decisions are made by lenders, not us. Read all terms and conditions provided by the lender prior to accepting a legally binding loan agreement.
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Most of the lenders in our network do not use a typical credit check, meaning with the 3 main credit bureaus. They may review an personal loan industry specific report such as DataX or Teletrack.
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Must be 18 years old to apply and be a full time citizen of the United States.
If you have any complaints about a lender you can contact the Consumer Financial Protection Bureau (CFPB) at:
Mail a complaint
Consumer Financial Protection Bureau
PO Box 2900
Clinton, IA 52733-2900
or call: (855) 411-2372
