Get a Mortgage with Bad Credit

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READER QUESTION

I am wondering if I can get a townhouse or 3-bedroom apt with bad credit? If so, how?

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Bills.com Resident Expert
Dec 12, 2011
HIGHLIGHTS
  • Banks want three qualities in a perfect borrower.
  • Bills.com makes it easy to compare mortgage offers and different loan types.
BILL'S ANSWER

Banks want three qualities in a perfect borrower:

  1. Stable income
  2. Attractive credit history
  3. Low debt-to-income ratio.

If a potential borrower lacks in any one (or more) of these, the potential borrower may find qualifying for a loan difficult.

Credit rating is one factor in making a loan decision. Given your bad credit, it will be more challenging to get approved for a loan.

Keep in mind, however, that if you have accumulated equity or have a sizable down payment, that could provide the cushion in an LTV (loan-to-value) calculation to get you approved. Also, your income will be a major (possibly the most important factor) as it will determine your DTI (debt-to-income ratio). Most of all, it cannot hurt to apply and see what lenders think of your own situation.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs.

I hope that his helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs. Spend a few minutes to learn if a no-cost mortgage is right for your situation.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

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