How to Buy a Home Despite Bad Credit

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No miracle happens when you have to wrestle with the poor credit situation right at the time when you need a mortgage. Oops! That is not a good match. After all, the included amount is so significant, and the lenders cannot take any risk. But what is the plan then? For sure ‘quit’ cannot be the word to use here. After all, it is about the ‘once in a lifetime’ dream for many out there.

Below are the most promising ways to get acceptance on your home loan with less-than-stellar credit score performance.

Find out the core of chaos first

To act in the reaction of a problem, you should know its essence. You have a bad credit situation, and that surely have some stimulators.


  • Are you Missing car loan installment?
  • Are you maxing out credit cards?
  • Are you not registered on the electoral roll?
  • Missed credit card payment?
  • Due personal loan repayments?
  • Poor debt-to-income ratio?
  • Unused credit cards, bank accounts, store cards, etc.?

Whatever is the reason for adverse credit situation in your case; it should be removed or rectified immediately. The mortgage is a big responsibility. If you expect the lender to show some trust in your creditworthiness, you too need to reciprocate with an excellent financial capacity.


  • Make timely repayments
  • Control the debt-to-income ratio through debt consolidation
  • Close the unused credit cards, store cards, bank account etc.

The above suggestions can help improve the credit score, and that is sure to a positive impact on your mortgage application.

You may not have achieved complete improvement, but something is always better than nothing. It will certainly show a good effect on your mortgage affordability.

Find a lender that offers specialised loan products

Once you have worked on the improvement part of credit rating (maybe a bit), it is better to apply for funds without wasting time. The best way is to apply for a mortgage product that can serve the applicants with derailed payment history. It is the ‘safe play’ strategy.

There are several choices that not only treat derailed credit history cases but also give assurance of approval. To experience it on your own, you should apply for guaranteed mortgages for bad credit from These are the guaranteed approval loans, and you get an assured acceptance. Forget not to bring a guarantor with a good credit score, and you can win the race.

Think about the joint mortgage option

Of course, this can be an option worth to consider. It could be challenging to prove your creditworthiness with a tag of less-than-perfect credit score performance. If your partner joins hand with your home loan application, it is never difficult to borrow funds.

The condition is that the joint applicant of mortgage should have a good credit rating, and also debt-to-income ratio should be satisfying. The 70:30 is an idol, but in the case of good credit score, 60:40 is also excellent.

Find a broker

Time is a precious asset, and with low credit rating, the search for a suitable option may not be fast. Also, it is risky because some fake lending companies take undue benefit. They claim that they are saviours and can get you funds. However, in reality, they take many types of charges to help a person with weak repayment capacity.

No lender tells its weaknesses, which keeps you from unbiased information. However, in the case of brokers, it is easier to see the market in totality. They know everything about the industry and can tell the name of the lenders that may help you. From procedures to their outcome, they can explain everything.

Take benefit of their capacity to predict the consequence of a set of efforts to get the loan. You surely can reach to a sensible option that could be impossible in their absence.

Other factors that may affect apart from credit rating issue

Oh, if you think that only the numbers of credit score can bring you a rejection, then it is a misinterpretation. There are several other factors too that can affect your chances of loan approval.

  • Employment status and income – To get any type of loan, you need to have a repayment capacity. For that, employment and income status need to be at the required position. For sure, the salaried/employed people are easy to judge by the lenders as compared to the self-employed.

Those with their businesses sometimes face difficulty, as the lenders do not understand the type of business. Also, irrespective of the kind of earning source, the income should be easy to justify.

  • Your age – Of course!! How can you forget that? An older applicant almost always gets a lower loan amount. The younger applicants can borrow more as their tenure can be longer. It is the reason that most of the youngsters try to buy their home at the right age. With a younger generation, they can get longer tenure and in turn, smaller instalments.
  • Deposit amount – Here you have another decisive factor. The minimum is 5% of the total property value. But if you go more than this, it hugely reduces the need for a mortgage to a lower amount. That ultimately shrinks the debt in size.

The above collection of information is undoubtedly helpful to bring you a pleasant message of loan approved. Keep following the logical way, and you can quickly get funds despite bad credit to buy your home.

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