At Alpine Mortgage, we understand that life’s financial challenges shouldn’t keep you from achieving your dreams of home ownership. We offer a variety of bad credit home loans for consumers with less than perfect credit or low credit scores. Our bad credit mortgage products can help put consumers on the road to home ownership and financial independence.
Mortgage lenders typically consider any credit score under 620 as bad credit when evaluating loan applications. This range can vary slightly among lenders, but generally, scores below this threshold may result in higher interest rates or a denial of loan applications due to a poor credit score. Conventional loans require a minimum credit score of 620 and have waiting periods after a bankruptcy or foreclosure before a borrower can apply for a loan. Mortgage lenders assess applicants’ credit scores as a key factor in determining their eligibility for a mortgage loan, especially for individuals with bad credit, offering various loan options like FHA loans, VA loans, and USDA loans that accommodate lower credit scores.
Our home loans for bad credit are specifically designed for individuals whose credit history might prevent them from obtaining conventional loan financing. We provide mortgage loans for borrower's looking to buy a house or refinance their existing home and take cash out to payoff other debts. Borrowers can qualify for these loans even if their credit history has any of the following:
These and a host of other credit related issues can be overcome by working with bad credit mortgage lenders that specialize in mortgage loans with poor credit. Alpine Mortgage maintains a team of highly skilled industry professionals familiar with the company’s less than perfect credit mortgage programs.
Below are some of the details of our bad credit home loan programs.
| Loan Type | Min. Credit Score | Min. Down Payment |
|---|---|---|
| FHA | 580 | 3.5% |
| FHA Low Score | 500 | 10% |
| VA | 580 | 0% |
| USDA | 580 | 0% |
| Non-QM | 500 | 20% |
The Federal Housing Administration (FHA) plays a crucial role in insuring FHA loans for consumers with poor credit, offering a safety net that makes it possible for lenders to provide mortgages loans with more lenient terms. These loans are backed by the government, ensuring that individuals with poor credit histories have access to home financing. The FHA’s backing means that lenders can offer these loans with no risk-based pricing adjustments, making them an attractive option for those looking to buy a house with bad credit.
Our FHA loans are specifically designed to assist home buyers with bad credit or very low credit scores, offering an attractive option to those who might otherwise be excluded from the housing market. With the ability to accommodate credit scores as low as 580 with a minimal down payment of just 3.5%, and even down to a 500 credit score with a larger minimum down payment of 10% or more, FHA loans stand out for their accessibility. For borrowers with a Chapter 7 bankruptcy there is a 2 year waiting period after discharge. There is no waiting period for a Chapter 13 bankruptcy after 12 months of payments in bankruptcy have been made. There is a 3 year waiting period after a foreclosure.
FHA also offers a home renovation loan, called the FHA 203(k) Renovation loan, where homebuyers and homeowners can finance the cost to renovate their home. The FHA 203(k) renovation loan can accept credit scores as low as 580.
For veterans, our VA loans offer favorable terms even with a less than perfect credit history. The VA loan is specifically tailored for service members, veterans, and eligible spouses, providing benefits such as 0% down payment, no mortgage insurance requirements, and flexible credit score qualifications. VA loans can go down to a 580 credit score with no down payment required. Additionally, VA loans do not require mortgage insurance which makes them an attractive option for eligible borrowers. There is a 2 year waiting period after discharge of a Chapter 7 bankruptcy and no waiting period for a Chapter 13 bankruptcy after 12 months of payments in bankruptcy have been made. There is a 2 year waiting period after a foreclosure.
Geared towards buyers in rural areas, USDA loans offer 100% financing options and lower credit score requirements that can go down to a 580 credit score. There is a 3 year waiting period after discharge of a Chapter 7 bankruptcy and a 1 year waiting period after a Chapter 13 bankruptcy. There is a 3 year waiting period after a foreclosure.
We have a variety of other Non QM loan programs available for borrowers that need more flexibility with credit scores down to 500 and no waiting periods after a bankruptcy or foreclosure.
Getting pre-approved for a bad credit mortgage is quick and easy with our online Loan Application. After completing the application, you will receive instructions on how to upload your documents. For a list of documents you will need to upload, see our Pre-approval Document Checklist.
A credit score is a numerical representation of an individual's creditworthiness, ranging from 300 to 850. This three-digit number is used by lenders to assess the risk associated with lending money to a borrower. A higher credit score indicates a lower risk, while a lower score suggests a higher risk. The most widely used credit scoring model is the FICO score, developed by the Fair Isaac Corporation. The scores are calculated by major credit reporting bureaus such as Equifax, Experian, and TransUnion.
There are several factors involved in the calculation of a credit score:
Consistent timely payments and effectively managing various credit accounts are crucial in determining the credit score, influencing low credit score mortgage approval rates and loan terms.
| Credit Score Range | Rating | Impact on Mortgage |
|---|---|---|
| 300-579 | Poor | Higher risk, fewer low credit score mortgage options available |
| 580-679 | Fair | More mortgage options, but potentially higher interest rates |
| 680-739 | Good | Better interest rates and mortgage terms |
| 740-779 | Very Good | Even better rates and terms |
| 780-850 | Excellent | Best rates and mortgage terms |
When applying for a bad credit mortgage, there are several mistakes to avoid:
If you're struggling with bad credit and seeking a mortgage, you may face challenges when applying through traditional banks. These institutions often have strict lending requirements, making it difficult for borrowers with credit issues to qualify for a home loan. However, there are alternative options available, such as working with a bad credit mortgage broker who specializes in helping individuals with credit issues.
A mortgage broker for bad credit acts as an intermediary between borrowers and lenders. These professionals have established relationships with a wide range of bad credit mortgage lenders and can help borrowers find the best mortgage terms that fit their unique financial profile.
When working with a bad credit mortgage broker, borrowers can expect:
Embracing a new financial beginning is possible with Alpine Mortgage. Our bad credit mortgage loans are tailored to meet your unique circumstances, helping you secure a home while improving your financial health. Our bad credit loans are available in the following states: California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Texas.
Call us today at (800) 876-LOAN to speak with one of our bad credit mortgage specialists or click here to have one of our bad credit home loan specialists contact you.
You'll need to provide various documents, including proof of income (such as pay stubs or tax returns) and recent bank statements. For a complete list of documents needed, see our document checklist.
Government backed loan programs, such as an FHA loan, VA loan and USDA loan, are usually the easiest type of loan to get approved for.
Good income will help lower your debt ratio and is a strong compensating factor that lenders take into consideration when evaluating an applicant with bad credit.
Most negative information will remain on your credit report for 7 years, including late payments, charge-offs, collections, and most public records.Bankruptcies can stay on your report for up to 10 years, depending on the type.
The time it takes to improve your credit score depends on your starting point and the actions you take. Some improvements, such as paying down debt, can have a quick impact, while others, like building a history of on-time payments, may take several months or more to reflect positively on your score.
Applying for a mortgage will result in a hard inquiry on your credit report, which may cause a slight, temporary dip in your credit score. However, multiple inquiries from mortgage lenders within a short period (usually 45 days) are typically treated as a single inquiry, minimizing the impact on your score.
