Bad Credit Mortgage Lenders You Should Know About

Bad Credit Mortgage Lenders You Should Know About
  • Author: Fazal Umer
  • Posted On: August 27, 2021
  • Updated On: July 5, 2023

According to some research, 16% of Americans have bad credit.

If you’re one of those Americans but need a mortgage lender, you don’t have to give up yet.

Thankfully, we have the perfect guide to help you get a mortgage, so keep reading to find out the best bad credit mortgage lenders.

Wells Fargo

Wells Fargo requires you to have at least a 620 credit score, and you’ll have to pay at least 3% down for conventional loans.  If you’re applying for a government-backed loan, the requirements will be lower.

They’re a traditional bank that has a lot of competitive rates, and it’s very easy to work with them. They have different types of mortgages, like VA, fixed-rate, variable-rate, and jumbo loans, available all around the country.

Regardless of where you are, you can apply online. However, they don’t offer a lot of information online if you’re trying to apply for a USDA or an FHA loan.

They’re great because they offer a lot of relationship discounts, and they’re very transparent in what rates they’ll charge you. Before you fill out an application, you should compare the different types of loans they offer and estimate how much interest you’ll have to owe back.

To find out what else you should look for when you try and decide on a mortgage lender, you can find more information here.

New American Funding

New American Funding will look at each mortgage application by looking at the merits rather than making sure you just meet a list of requirements.

This means that if you’ve had financial problems, you might have someone reviewing your application who is more empathetic and wants to know the story of what happened.

They also offer very competitive mortgage rates along with high customer reviews.  They have different types of loans to choose from, like FHA loans where you only need a credit score of at least 580.

They also promise to guarantee you a loan within fourteen business days, so if you’re on a short timeline, this can be a great option.

You can contact them by going into a branch location, calling them, or going online. They also have a call center that is bilingual for those who speak Spanish rather than English.

However, the only thing to consider is that they don’t offer loans in Hawaii or New York. But if you’re in any other state, this place is a great option to check out!

Rocket Mortgage

Rocket Mortgage can easily import all of your employment and income information, which makes it easy to apply online. They also have plenty of videos and help to make sure that you have an easy time when applying for their job.

With Rocket Mortgage, you can expect the application to take about half an hour.

They’re great because they apply to people who want to talk with a representative as a last resort. You’ll also have access to see an estimate of how much a loan you would be able to qualify for.

If you want to get a customized rate for interest, then you will need to do a credit check. If you do too many of these, it can lower your score by a few points, so that’s something to keep in mind.

Freedom Mortgage

Bad Credit Mortgage Lenders You Should Know About

Freedom Mortgage is great if you’re a service member or veteran who wants to get a VA loan. However, they offer plenty of other options.

If you have a really bad credit score, you can get an FHA loan through them if your credit score is at least 540.

Through this lender, the rates are really competitive, but these fees can be higher than other common lenders out there.

They take into account your history that doesn’t involve your credit as well. For example, if you’ve only had a line of credit open for a short time, they’ll look to see if you’ve paid your credit card bill, rent, utilities, and other bills on time.

This lender has great customer service, and they will walk you through a personalized process. You can either do this in one of their branch locations or on the phone. They don’t really have a great online experience.

They have branches in twenty-six states, but they’re licensed in every state.

Navy Federal Credit Union

To get a loan from this mortgage lender, you’ll need to be a member of their union. This union is also only restricted to service members, veterans, or their family members. This means that they’re great at VA loans.

They offer some of the best mortgage rates and fees when it comes to VA loans. They also don’t have a minimum credit score requirement.

This rings true to their mission saying that they can’t judge someone based on a number but rather by other factors, like on-time payments.

They do not offer any USDA or FHA loans. If you’re not eligible to get a VA loan, you might want to go with another option.

They also only offer online services, but you can use their app as well.

Learn More About Bad Credit Mortgage Lenders

These are only a few of the bad credit mortgage lenders, but there are many more out there to choose from.

We know that getting a mortgage can be stressful and overwhelming, but we’re here to help you out.

If you enjoyed this article, make sure that you explore our website to find more articles just like this one!

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Author: Fazal Umer

Fazal is a dedicated industry expert in the field of civil engineering. As an Editor at ConstructionHow, he leverages his experience as a civil engineer to enrich the readers looking to learn a thing or two in detail in the respective field. Over the years he has provided written verdicts to publications and exhibited a deep-seated value in providing informative pieces on infrastructure, construction, and design.