Bad Credit Home Loans Guaranteed Approval

Q: I am looking for any home loan lender that offers bad credit home loans guaranteed approval. Does this type of home loan exist, if not, how does someone with bad credit get a home loan?

A: There are some lenders that may advertise “bad credit home loans guaranteed approval”, however, bad credit home loans with guaranteed approval for everyone do not exist. Similar to most other types of loans, lenders of home loans will need to use an individuals credit score/history as a factor when calculating the “risk” associated with making the home loan to that particular individual. There may certainly be some home loan lenders willing to take more of a “risk” by making a home loan to an individual with poorer credit, however the interest rates associated with these “bad credit” home loans are often extremely high.

For an individual to secure a home loan in today’s market, most home loan lenders will require a minimum of 3.5% money down and a minimum credit score of 620 (and many home loan lenders will require more money down and/or a higher credit score). Since obtaining “bad credit home loans guaranteed approval” will likely not be a realistic option for most individuals, individuals with poor credit should begin taking corrective steps to help improve their credit score immediately. Improving your credit score, or finding a creditworthy cosigner for the home loan will likely be the only way a person with bad credit will improve their chances at securing a home loan.