If you have gotten to a point where your credit score resides in the “poor” range, it’s logical to think that you won’t be getting a mortgage anytime soon. After all, who would want to give a mortgage to someone with poor credit?

Depending on the actual state of your credit, this belief may be true, but you probably aren’t without options. 

Find the Right Lender

Not all lenders are interested in helping you if you have poor credit, so the first step in your quest is to find one that will help. If your credit score is low enough, the big banks won’t lend you anything, but there are still trust companies and other “sub prime” lenders who are willing to give you a mortgage. This may end up being an exhausting search, but if you work with a mortgage broker, they should have a list of potential lenders for you. 

Pay More Upfront

Making a larger down payment is one option you may have for a bad credit mortgage. Poor credit means you’re a higher risk for the lender, so you’ll be expected to put down more upfront. Putting down 25 or even 30 percent will give you some much-needed leverage and give your application some potential. 

You’ll also be looking at paying higher fees to the lender and a higher mortgage rate if your application is accepted. Basically, the fact that your credit is in disarray means you have to pay more every step of the way. 


You will also have to exercise some patience if you’re looking for a bad credit mortgage. Those ideal terms and deals that you hear of others getting won’t apply to you, so waiting will become part of your strategy. 
You may have to work for a certain period of time to show that you’re making a steady income, which is another area that patience is required if you haven’t been at the same job very long.

Following the Rules

Basically, trying to get a mortgage with poor credit means that all your financial information is out there for lenders to see and sort through. It’s extremely important to follow the rules that are set down by the prospective lenders you speak to, because if you don’t your chances of getting a mortgage will slip farther and farther away. This is the time to put your ego away, stay focused on your ultimate goal of owning your own home and do whatever you must do to make it happen.