If someone told you that it was impossible to get a mortgage loan with bad credit, they were wrong. In fact, there are mortgage loans available to those with bad credit, if you look in the right spots.
There are different lending institutions that will give the borrower the ability to apply and be approved a mortgage loan, regardless of their credit history. In fact, there are many different plans that are now available to those with bad credit. A simple search on the Internet will provide you with a variety of different results.
The fact is, credit doesn't have to stop you from getting a mortgage loan. However, there are some trade-offs that you will have to make in order to get such a loan. You have to see it from the lender's perspective -- when they're giving a loan to somebody with bad credit, they are taking on a higher risk. So therefore, they want their reward to be higher. To get a higher reward, the first thing they do is charge you more in interest rates.
Without a doubt, you can be expect to pay more in interest rates if you have bad credit and are getting a mortgage loan.
How else do they make it up? Well typically the term on the loan will be shorter than you would get if you have good credit. This means that the monthly payments will be higher. Of course, if your credit improves over time, you will have the ability to refinance the loan, so you can have a lower interest rate, or make smaller payments.
Finally, in order to qualify for mortgage loans with bad credit, you will usually have to put down a higher down payment. Like I said, there are trade-offs. However, if you're able to raise the down payment, and can budget accordingly so you can meet the high interest rates and a higher monthly payments, then you will have the ability to get a mortgage loan regardless of your bad credit.
