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Get a Mortgage with Bad Credit

Bills.com Team
UpdatedFeb 20, 2024
Key Takeaways:
  • Banks want three qualities in a perfect borrower.
  • Bills.com makes it easy to compare mortgage offers and different loan types.

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

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

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

The Latest on Mortgage Rates

No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.

Mortgage rates February 14, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of February 14, 2024 is 6.64%. This represents a 13 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for February 14, 2024 is 6.12%. This is a 22 basis points increase from last week’s rates.

What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for February 18, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:

  • For a 30-year conventional loan, the interest rate is 7.03%.
  • If you opt for a 15-year conventional loan, the interest rate stands at 6.19%.
    Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,862. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,384.

Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.

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