Can You Get A Mortgage With Bad Credit? | Carlos Scarpero, Mortgage Loan Officer in Dayton, Ohio, NMLS #1674385

Can You Get A Mortgage With Bad Credit?

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Use one of our quick & easy tools to find out what you qualify for.

Wondering if you can get approved for a mortgage with problems on your credit report?

The answer is maybe.

It depends on what your problem is and what your credit score is.

We can approve you with a 580 credit score and 3.5% down or a 550 credit score with 10% down. This is more lenient than most of our competitors.

That's the minimum requirement. There are other considerations as well.

For example, FHA also allows a debt ratio of up to 56.9%. 

FHA will also allow you to use gift funds to buy without any money out of your pocket.

It gets squirrly though when you do all three at the same time. If your credit score is in the high 500's, you have no money of your own and your debt ratio is over 50%, you are going to have a hard time getting approved by anyone.

You need to be living within your means!

Recency and the reason for the delinquency are also examined very closely. You need to have a good explanation ready.

If you had some issues a few years ago but are ok now, that's a lot better than having ongoing issues.

Your reason for the delinquency needs to be resolved before applying.

Have questions? Feel free to reach out. I'm here to help!

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