Finding a mortgage lender when you have bad credit can feel overwhelming. Fortunately, several lenders specialize in providing options for individuals with less-than-perfect credit scores. Here’s a rundown of some of the best mortgage lenders for people with bad credit in the United States.
Quicken Loans is well-known for its innovative technology and user-friendly online application process. They offer a variety of loan options that cater to individuals with lower credit scores. Quicken Loans typically allows for a minimum credit score of around 580, making it an excellent option for those with bad credit.
Carrington Mortgage Services is another strong contender for borrowers with poor credit ratings. They focus on providing FHA loans, which are particularly accommodating to individuals with damaged credit histories. With Carrington, you can often qualify for a mortgage loan with a credit score as low as 500, provided you can make a larger down payment.
New American Funding stands out for its commitment to helping borrowers obtain loans despite credit challenges. They offer various mortgage products, including FHA, VA, and USDA loans. Their flexible guidelines often allow individuals with credit scores starting from 580 to qualify, especially for FHA loans.
While not a lender, it’s crucial to note that the Federal Housing Administration (FHA) insures loans that are often accessible for those with bad credit. Many lenders partner with the FHA to offer favorable terms, allowing credit scores as low as 580 for a 3.5% down payment, and even down to 500 with a 10% down payment. Researching lenders that offer FHA loans can broaden your options.
Guaranteed Rate is known for its competitive rates, extensive loan options, and robust customer service. They accept credit scores starting at 620, making it attainable for many individuals with bad credit. They also offer a seamless online application process, which makes securing a loan more manageable.
Freedom Mortgage is another excellent choice for borrowers with less-than-ideal credit. They provide a range of mortgage products, including VA and FHA loans. With their flexible qualification requirements, people with credit scores in the 500s may still find an opportunity for homeownership.
PennyMac has gained popularity for its diverse loan options and commitment to helping homeowners. They cater specifically to those with imperfect credit, offering FHA loans that can be accessed with credit scores starting in the 580 range and higher. Their user-friendly online platform simplifies the mortgage application process.
Don’t overlook local credit unions as potential mortgage lenders. Many credit unions have less stringent lending criteria and focus on community support. If you’re a member or can become a member, you may qualify for a mortgage despite having bad credit. They often provide personalized service and competitive rates.
While securing a mortgage with bad credit can be challenging, several lenders in the United States specialize in helping individuals overcome these hurdles. Options like Quicken Loans, Carrington Mortgage Services, New American Funding, and others offer various loan products designed to accommodate borrowers with poor credit histories. Always consider exploring options such as FHA loans and local credit unions to maximize your chances of mortgage approval.
