Bad Credit Mortgage FAQs
have poor credit you are not alone, because there are a lot of people in today’s economic times that are down on
their luck. For whatever reason you have poor credit, this does not have to mean that you will not qualify for a
bad credit mortgage on a first time home loan or a mortgage refinance. Understanding the answers to the FAQs for
this type of mortgage will help you to know if that is what you need or not.
1. Do I have to have a large down payment? If you are getting a loan for poor credit
or mortgage refinancing, the requirements are typically higher, meaning your down payment will need to be pretty
2. What constitutes a poor credit history?
If you make your payments late pretty often for a certain amount of time, your history will be
3. If my current mortgage has late payments, can I
still refinance? As long as your payments are less than thirty days, they won’t be on your credit
report. Even still, you might be able to qualify because lenders look at other factors as well.
4. Are interest rates higher for this type of
loan? Most interest rates are lower these days because of the economy, but a poor credit loan will
typically be higher than a conventional loan.
5. What, exactly, is a poor credit score?
Many loan companies require a credit score above six hundred and twenty, but this does not necessarily mean you
will qualify because if you have too many late payments recently, this could look bad for you.
6. How long should I wait to get a loan after my
foreclosure? There is a minimum of three years for you to get an FHA loan.
7. If I file for bankruptcy, how long should I wait
before getting a home loan? There are different types of bankruptcy, but typically, you could get a
loan after two years, possibly one.
8. Can I get approved for a home loan if I have poor
credit? There are some criteria you will have to meet, but it is possible.
9. What happens if my house is worth less than what I
owe on my mortgage? You will not be able to refinance, but you might be able to qualify for a loan
10. What documents do I need to provide? You
will probably need a photo ID, two months worth of bank statements, proof of income, tax returns, and possibly