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. 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, VA, 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 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 loans for consumers with poor credit, offering a safety net that makes it possible for lenders to provide mortgages 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 a lifeline 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 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.
For veterans, our VA loans offer favorable terms even with a less than perfect credit history. 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 options 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.
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 FHA, VA and USA loans, are usually the easist 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.
