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Getting a Home Loan with a Bad Credit History

Your credit history/rating is one of many factors lenders use to evaluate your eligibility for a home loan and it is also one of the most important. The worse your credit is the harder it will be for lenders to trust that you will be able to pay off your home loan. As a result, if you happen to have bad credit, your chances of getting approved for a standard home loan are slim. However, there are a number of options available to you if you are looking for a home loan with a bad credit history.

Bad Credit Home Loans/Non-Conforming Loans

There are multiple loans specifically designed for people with bad credit mostly offered by non-conforming lenders. Our mortgage brokers have intimate knowledge of each type of bad credit loan and can advise you on the best for your situation. These include:

Home Loans for Defaults

If you have defaulted on any of your loans this will be recorded on your credit score and generally none of the big banks will accept you for a home loan. A default is any overdue account and can apply to loans, credit card bills or even phone bills. However, there are loan options available for both defaults that haven’t been paid or paid partially, and defaults that have been fully paid.

Discharged From Bankruptcy

If you have a history of bankruptcy, it is a big red flag to many lenders, major or otherwise. However, even so once you have been discharged there are some lenders that will allow you to take out a home loan specifically for this situation.

Debt Consolidation

If your credit rating is suffering from a large number of small debts that are difficult to manage a debt consolidation home loan may be suitable for you. This will allow you to merge all your small unsecured debts into a single home loan with a single monthly repayment. This will make your debt easier to manage and also allow you to lower your interest rates on high interest rate debts.

If you have found yourself with bad credit and are struggling to get approved for a home loan consider a bad credit home loan. Our brokers can help you with finding the right bad credit home loan to suit your situation and improve your chances of approval for all home loans, bad credit or standard.

If you would like to learn more about applying for a home loan with bad credit history and the options available to you please get in touch with us today.