Trying to get a mortgage with bad credit, low credit, or no credit can be tough. It can feel like living with a criminal record, following you around- holding you back wherever you go.
Generally speaking, a credit score of 700, or a credit history with little to no activity makes banks leery when you apply for a loan.
Some will work with you but getting decent terms and APRs can be tough. However, if you know where to go you and who to ask, you can get what you need with decent terms
What makes the following institutions stand out are their unusually low minimum credit score requirements and low-down payments, letting you in the door. That, and highly competitive rates and terms make these lenders especially attractive to those of us who don’t carry around a collection of credit cards.
Here are, the top five bad credit home loans for those with poor credit.
Lenders for Those With Bad Credit
Primary Residential Mortgage
With a minimum credit score requirement of 640, Primary Residential Mortgage (PRM) is one of our top picks. They let bad credit homes borrowers offer as little as 3.5% for down payments, making getting your foot in the door a breeze. They allow for a wide range of term lengths, and they heavily promote their FHA mortgage package- which is one of the most accessible types of mortgages.
With one of the lowest minimum credit scores of 580, Quicken Loans (QL) is one of the well-known go-to lenders for folks with spotty credit histories. They offer 15, 20, 25, and 50-year fixed rate loans, to borrowers looking to buy a primary residence.
Like PRM, they offer down payments as low as 3.5%, and their rates for non-VA fixed loans are very competitive, between 3.99% to 4.56%.
Ditech Home Loans
Ditech does not offer a set minimum credit score, but they are willing to work with borrowers whose scores are below 700 in most cases and are considered one of the best lenders to go to for those with low credit.
They have a range of FHA loan options and available down payments of 3.5%. Their 30-year mortgage requires a 4.5% down payment. That’s higher than the others, but still very competitive.
Mortgage Investors Group
The Mortgage Investors Group (MIG), like Ditech, does not advertise a set minimum credit score. But they are still well known for working with borrowers below the standard bad credit line of 600. Of all the low credit home lenders, MIG has the widest range of packages available. This includes FHA loans, which are the best option for low credit borrowers.
Unfortunately, lenders who advertise a minimum credit score are not the norm- and this legacy financial institution is the closest thing to a traditional lender on our list. Still, they are surprisingly flexible and open to low credit borrowers.
They offer a range of loan packages with down payments as low as 3%. They offer VA loans and have an “Easy to Own Guaranteed Rural Housing Program” making them one of the best options out there.