If you have bad credit, you might be wondering: can you get a mortgage with bad credit? Yes, you can! You can find some lenders specializing in bad credit mortgages, also known as adverse credit or sub-prime mortgages. You should avoid getting a mortgage with bad credit – it’s easy to lose your home if you can’t make the payments.
Improve your credit score
Aim to pay down all your credit card balances within six months. Paying them off regularly can also increase your credit availability and raise your FICO score.
However, it is not impossible. Bad credit mortgages are available for those with scores ranging from Very Poor to Fair/Poor. All you need to do is research to find the right lender and maximize your chances of approval.
Find a bad credit mortgage lender.
Some lenders only work with borrowers with good credit, while others will only lend to people with bad credit. If you don’t know what kind of lender you need, consider looking for a government-backed loan.
The process of buying a home with bad credit can be daunting. But don’t give up just yet.

Apply for a conventional loan
A government-backed loan may seem like the only option for a borrower with bad credit, but this type of mortgage offers perks to borrowers who do not have good credit. While these loans require large down payments, they may have lower interest rates and allow for more flexible loan terms. However, they can be more expensive, and you may be better off saving money by opting for a conventional loan. However, before deciding, make sure you compare the two types of loans to see which one suits you best.
Generally, a conventional loan requires a lower down payment than an FHA or USDA loan. However, this is not true for all types of loans. An FHA or USDA loan may require only a 3.5% down payment. USDA and VA loans are also government-backed and require no down payment. These loans may be suitable for low and moderate-income buyers in rural areas.
Apply for a VA loan
First, review your credit history for mistakes. However, if you’ve recently filed for bankruptcy, you may be disqualified from applying for VA loans for up to two years.
The good news for those looking to apply for a VA loan with bad credit is that lenders don’t set a specific minimum credit score. They’re simply looking for credit-worthy applicants. A loan with bad credit can be easy for those with a steady income and low debt-to-income ratios. Even though you have bad credit, you can still be approved if you have a stable job and stable income.