Bad Credit Lender | Applying For A Bad Credit Mortgage

Applying for a Bad Credit Mortgage Loan

:: Bad Credit Lender columnist : Leslie Collins - 5/2008

Don't rule out applying for a bad credit mortgage if you are sure you can afford the payments. Despite not receiving the lowest interest rate, a bad credit mortgage may help you rebuild your credit very quickly.

You should completely understand your current Income-debt ratio in order to know how much home you can afford. You don't want to get into a situation that only creates more of a credit problem.

Be aware that you may apply for programs like FHA that do not require minimum FICO scores. This Federal program insures loans made by approved FHA landers, usually easy to find in your community and online. Take advantage of it.

What Do I Need To Apply for a Bad Credit Mortgage?

  • Up-to-date credit report - ensure it's accurate ( this may be time consuming but well worth the effort)
  • Remove incorrect information and closed accounts from your credit report - it may improve your score
  • Income documentation - 1099, W2, tax-return etc... Bad credit loans are usually contingent on you having steady income.

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