Based on our research, the key to consumers getting a home loan or mortgage refinance even if with less than perfect, or downright bad credit, is choosing a loan program that specifically meets their needs. Home loan programs for nearly every situation exist but it is easy to become discouraged when conventional banks and credit unions decline the loan application due to bad credit. It appears that it is generally more difficult to qualify for a gas card than it is to qualify for a home loan or mortgage refinance. Many would-be homebuyers or those seeking to refinance their existing mortgage have mentally disqualified themselves due to what they believe is a bad credit rating. These borrowers perceive that if they are declined a credit card or car loan that there is no way to qualify for a home loan or to refinance their existing mortgage.
This appears to be a common problem that is easily overcome. Many individuals with less than perfect or bad credit are consistently turned-down for credit cards, car loans and other financing due to poor credit rating. These same borrowers are surprisingly considered "A" borrowers by many home loan and mortgage refinance programs. These home loan application approvals were granted to the same people that were disqualified by conventional banks and credit union when they applied for their "A" home loan or mortgage refinance program. Sometimes the conventional bank or credit union offered a home loan program but required thousands of dollars in fees or, offered uncompetitive loan terms and/or interest rates. Other times, the mortgage application was declined altogether.
Those that were declined by the conventional bank or credit union for a mortgage due to insufficient or bad credit still have many alternatives. Even those disqualified from these special "A" home loan programs described above because of bad or insufficient credit rating are able to get home loans at competitive rates and terms. These borrowers do not meet the underwriting guidelines of conventional banks or credit unions but we found hundreds of home loan programs that had underwriting guidelines well within the reach of these borrowers. They key is finding the mortgage loan program matching the situation.
