Is it possible to get a home loan even if you have a bad credit record? The answer is yes! There are what we call in the industry ‘non-conforming’ or ‘bad credit’ home loans, designed to help people who can’t meet the bank’s normal guidelines. People who have lost their job, got divorced, or suffered business bankruptcy can often still get their dream home by applying for a bad credit home loan.
Who can qualify for a bad credit home loan? Basic qualifying criteria include:
- Small paid default – Did you know that you could still borrow up to 90% of the property if you have paid small default (below $500) six months ago?
- Several small paid defaults – You may still borrow up to 85% of the property value if you have small paid defaults (below $1,000 from financial institutions and below $500 from non-financial institutions).