Bad credit can cause financial hardships for any anyone. Does a poor credit rating mean you cannot have a mortgage? A poor credit rating simply means you have to work harder to find competitive financing for your mortgage.
Homeowners with poor credit ratings can easily find 100% financing for their home purchases. In many cases it is just as easy to qualify for this financing as if you had excellent credit. There are many lenders today that specialize in mortgages for people with poor credit. There are even lenders that will finance 103% of the purchase price to cover your closing costs.
If you do not have the time to research mortgage lenders and find these offers yourself, you might consider using a mortgage broker to find offers tailored for your situation. When applying for your mortgage you will want to avoid paying Private Mortgage Insurance; make sure you choose a lender that does not require this insurance policy as it can add hundreds of dollars to your monthly payments.
One way to avoid Paying Private Mortgage insurance is to take out an 80/20 mortgage loan. This type of mortgage is actually two mortgages, one for 80% of the property and a second for the remaining 20%. These loans may come from two separate lenders so you will be required to make two payments. You can learn more about your mortgage options by registering for our free mortgage guidebook.