How Can I Get a Mortgage with a Bad Credit Score?

There are many ways to get a mortgage even if you have recovering credit.

First, a government-insured loan will allow you to obtain a mortgage with a lower credit score than you would need to obtain a comparable conventional mortgage. Consider government-backed programs as a key part of your search for a mortgage if you have a low credit score.

Additionally, some smaller banks will allow you to obtain a mortgage even if you have a low credit score, as these banks are aiming to improve their business and expand the number of loans on their books. If this is the case, you have a better chance of qualifying for the mortgage you need. However, mortgages given to a borrower with a low credit score will likely feature higher interest rates than those given to a borrower with a high credit score. If your credit score is too low, you may be considered particularly risky and even a small bank will be wary of lending to you.

Overall, getting a mortgage with a low credit score is possible, but the terms may not be as good as you would like.