Finding the right mortgage lender can be challenging, especially for individuals with bad credit. However, several lenders specialize in offering options that cater to those with less-than-perfect credit scores. Here are some of the best mortgage lenders for people with bad credit in the US.
1. FHA-Approved Lenders
The Federal Housing Administration (FHA) offers loans that are specifically designed for borrowers with low credit scores. FHA guidelines allow for credit scores as low as 580 for a 3.5% down payment. If your score is between 500-579, you may still qualify but will need a 10% down payment. Many lenders work with FHA-backed loans, making them a reliable option for individuals with bad credit.
2. Quicken Loans
Quicken Loans is known for its user-friendly online platform and offers various financing options, including FHA and VA loans. They are particularly accommodating for borrowers with credit scores on the lower end of the spectrum. Their fast processing times and commitment to customer service can make the mortgage experience smoother for individuals with bad credit.
3. Carrington Mortgage Services
Carrington Mortgage Services specializes in lending to borrowers with credit challenges. They offer a variety of loan products, including conventional loans and FHA loans. Additionally, Carrington is known for its flexible credit criteria, which can accommodate borrowers with lower credit scores.
4. Veteran’s United Home Loans
For veterans and active military members, Veteran’s United Home Loans is a top choice. They provide VA loans, which do not require a down payment or private mortgage insurance (PMI). The minimum credit score requirement for VA loans varies by lender, but many are willing to work with those with credit scores below 620.
5. New American Funding
New American Funding offers a wide range of mortgage products catering to various needs, including loans for those with bad credit. They provide options such as FHA loans and can guide borrowers through the process of improving their credit to qualify for better rates in the future.
6. LendingTree
LendingTree is an online marketplace that connects borrowers with multiple lenders. While they do not directly lend money, they can help you compare rates and terms from various lenders willing to work with borrowers who have bad credit. This enables individuals to find a lender that best matches their financial situation.
7. HomeBridge Financial Services
HomeBridge Financial Services is renowned for its flexibility in mortgage lending, especially for those with bad credit. They offer a variety of loan types, including government-backed options and conventional loans. HomeBridge focuses on helping individuals find financing solutions that suit their needs while considering their credit history.
In summary, while having bad credit can make it tougher to secure a mortgage, various lenders are committed to helping individuals navigate the process. Whether it’s through FHA loans, VA loans, or specialized lenders, there are options available. Always consider shopping around and comparing offers to find the best lender for your specific financial situation.
