Bad Credit? Bank Said No? You Can Still Get a Mortgage!
January 25, 2025 | Posted by: Alex Vinarski
If you have bad credit and the bank said no to your mortgage application, don’t worry. You still have options to buy a home or refinance your property. There are lenders who specialize in helping people with credit challenges. Let’s explore your options:
1. B Lenders: Easier Approval and Affordable Rates
B lenders are a great option for people with bad credit. They are more flexible than banks and can offer mortgage approvals even if your credit score is low. The best part is that their interest rates are only slightly higher than bank rates, making it an affordable solution.
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Minimum down payment: 20%
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Easier income verification: You can use bank statements and deposits instead of tax returns.
If you have a steady income but bad credit, a B lender might be the right fit for you.
2. Private Lenders: Flexible Approval with Higher Costs
Private lenders are another option if B lenders won’t approve your mortgage. Private lenders focus mainly on the value of the property rather than your credit score. If your property is marketable and the deal makes sense, you can still get a mortgage.
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Minimum down payment: 25% ( 20% on exception).
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Higher interest rates: Starting from 6.5%
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Flexible approval: No income verification required
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Fast funding: Mortgages can be funded in as little as 5 days
- Flexible terms: Mortgage can be open, and paid off any time without penalty, even private HELOC is available
Private mortgages are ideal if you need a short-term solution or quick access to funds.
Which Option is Right for You?
Choosing between a B lender and a private lender depends on your financial situation and goals. If you can provide some income proof and have at least a 20% down payment, B lenders offer better rates. If you have difficulty proving income or need a faster solution, private lenders can help you secure the financing you need.
Get Expert Advice
If you’re unsure about your options, I can help! With access to multiple lenders, I can find the best solution for your unique situation. Contact me today to explore your mortgage options and take the next step towards homeownership.
