13 Best Mortgage Lenders For Bad Credit Borrowers with Rates and Benefits
If you have bad credit, then you’re probably wondering if you’ll ever be able to get a mortgage. The good news is that some lenders will help you get financing, even if your credit isn’t the best. But before we get into the specific lenders that offer mortgages for people with poor credit, let’s talk about their rates and terms.
Most lenders require a minimum score of 620 to qualify for a bad credit mortgage. However, some lenders will approve borrowers with scores as low as 580 — which is still considered “fair” by most standards.
In addition to your score, lenders also look at your debt-to-income ratio (DTI), which is calculated by dividing your total monthly debt payments by your gross monthly income. If your DTI exceeds 50%, then it’s likely that the lender will decline your application or request additional information before approving it. Here are 13 best mortgage lenders for bad credit borrowers with rates and benefits.
1. AmeriSave Mortgage
AmeriSave Mortgage is a direct lender that offers mortgages with reasonable rates and low fees.
Unlike some lenders, AmeriSave does not require borrowers to have a minimum credit score to get approved for a mortgage. However, you will need to meet the lender’s debt-to-income ratio requirements and have at least three months of savings available for your down payment and closing costs.
AmeriSave Mortgage offers flexible mortgage options to help you get back on your feet. They offer fixed-rate and adjustable-rate mortgages (ARMs), including hybrid ARMs that combine features of fixed-rate and ARMs.
2. Veterans United Home Loans
Veterans United Home Loans is an online lender that caters exclusively to military veterans and their families. While the company does not have an official minimum credit score requirement, it does have a maximum score of 680, which can be hard to achieve if you’ve experienced financial hardship in the past few years. The company also requires borrowers to meet its debt-to-income ratio requirements and provide proof of income before qualifying for a loan.
3. Prosperity Home Mortgage
Prosperity Home Mortgage offers loans up to $2 million. Prosperity Home Mortgage offers competitive rates and terms and flexible financing options that may not be available through traditional lenders.
Prosperity Home Mortgage also provides a 24/7 customer service team ready to help you find the right loan program for your needs. This includes phone and lives chat support, which lets you connect directly with a representative whenever you need them most.
4. Quicken Loans
Quicken Loans is a nationwide lender that offers many different mortgage options for borrowers with bad credit. The company offers loans to borrowers with FHA, VA, USDA, and jumbo loans in addition to conventional mortgages. It also offers a variety of loan programs for both first-time homebuyers as well as repeat buyers.
Quicken Loans has been around since 1985 and employs more than 9,000 people across the country. The company provides mortgage services in all 50 states.
5. Navy Federal Credit Union Mortgage
Navy Federal Credit Union Mortgage is an online lender specializing in mortgages for borrowers with bad credit. It offers fixed-rate and adjustable-rate loans for up to 30 years, with low down payments and high loan amounts (up to $729,750). The company also has an impressive customer satisfaction rating on Consumer Affairs (4/5 stars).
6. Bankrate
Bankrate is one of the largest online banks in the country, and it offers several different types of loans and mortgages for people with poor credit scores. The company offers all home loans, including fixed-rate, adjustable-rate, and interest-only mortgages. Bankrate also has a dedicated customer service line that can help you find the right loan program based on your needs, income level, and other factors related to your credit score.
7. Rocket Mortgage
Rocket Mortgage is an online lending platform from Quicken Loans that allows you to apply for a home loan using your smartphone or computer. The company also has brick-and-mortar locations in some states where you can talk to an agent about your loan options in person. Rocket Mortgage offers fixed-rate mortgage options for both purchase and refinances applications. You can get preapproved by uploading your documents online or by visiting one of its branches if you want to speak with an agent about your mortgage options.
8. LendingTree
LendingTree is a consumer marketplace for mortgages and other types of credit, such as personal, auto, and student loans. The company’s website features listings of mortgage lenders and the interest rates they offer. You can also search for lenders in your area. Once you find a lender you’re interested in, you can apply directly through the LendingTree website.
LendingTree is a good option if you’re looking for a low-cost mortgage or want to understand your options before applying elsewhere. It doesn’t charge fees or prepayment penalties, but its rates may not be as competitive as those at other online lenders.
9. VA Rate Guide
The U.S. Department of Veterans Affairs offers programs that can help veterans obtain home mortgages with little or no money; however, these programs have strict eligibility requirements that aren’t always easy to meet. If you’re a veteran looking for assistance with your mortgage payment, check out the VA Rate Guide website first to see what rates are available from approved lenders in your area before applying anywhere else.
10. Wells Fargo Home Mortgage
Wells Fargo Home Mortgage is one of the largest mortgage lenders in the U.S. and has been for a long time. The company was founded in 1852 and has grown to become one of the largest banks in the world. It is also one of the oldest: Wells Fargo was one of the original companies that helped finance America’s westward expansion. Today, it operates over 13,000 branches across the U.S. and over 6,000 ATMs nationwide. In addition to its retail banking operations, Wells Fargo also offers mortgage lending services through its subsidiary, Wells Fargo Home Mortgage.
11. FHALoans.com [http://FHALoans.com]
FHALoans.com [http://FHALoans.com] is an online mortgage lender that offers loans for homeowners with bad credit scores (or no credit score at all). This is an excellent option for borrowers turned down by other lenders because of their poor credit history or lack thereof — or for those who want to apply without having to visit a branch office first. FHA loans work directly with lenders who specialize in lending money to borrowers with poor credit scores or no score; this means you can get preapproved before shopping for homes.
12. New American Funding
New American Funding is a nationwide lender with a strong focus on servicing loans to borrowers with lower credit scores. The company uses an “innovative underwriting process” that considers factors beyond your credit score. A loan officer will review your application and determine if you’re eligible for a loan. You can expect rates as low as 3.75% APR for a 30-year fixed-rate mortgage (FRM) if approved.
13. PNC Bank Mortgage
PNC Bank offers home loans for people with good and bad credit. The lender has several options for borrowers with less-than-perfect credit scores, including HomeWorks Plus and its HomeWorks Mortgage Solution program. With these programs, borrowers can access low rates and flexible terms — even if they have less than perfect credit histories or no down payment.
Wrapping Up
Mortgage lenders have a wide range of options, including loans tailored to people with bad credit.
To find the best mortgage lender, look no further than your neighborhood. Local banks and credit unions are often eager to lend to borrowers who have had trouble getting approved for loans in the past, and they may be able to offer better rates than lenders who aren’t based in your area. But if you don’t have a local bank or credit union that caters to people with poor credit scores, there are still plenty of online options. Some lenders offer mortgages to borrowers with bad credit scores, and others offer all types of mortgages (good and bad) on their websites. In this article, we’ve covered informative content about some of the best mortgage lenders for bad credit borrowers.