Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

Divorce’s Impact On Credit

Your ex-spouse can continue to negatively impact your credit even after the judge has dissolved your marriage contract. If you sign joint financial agreements, then you are responsible for paying those loans even if the judge signed over the accounts to your ex.

This means that if the house is the other person’s and they are making late payments, then your score will go down no matter what the judge said. The same is true with credit cards.

Improving Your Score

Make sure that all joint accounts are transferred to individual accounts after the marriage. Homes and cars should be refinanced, and credit card balances should be transferred to new accounts with old accounts closed.

You can also include a letter of explanation in your credit report, explaining why there were late or missed payments. Be sure to include a copy of your divorce decree so lenders can see that it is final.

Finding Reasonable Rates

Even with a poor credit score, you can still find a home loan with reasonable rates. The most important thing is to investigate rates and terms of several subprime lenders. You can quickly weed out the scammers who refuse to disclose terms or who charge excessively high closing costs.

Even if you have a bankruptcy on your record, you can still apply for a mortgage. Some lenders will look at your application after the bankruptcy has been discharged for a year, others two years or longer. Each lender has their own set of qualifications, so do not hesitate to check with several financing companies.

You can also improve your mortgage rates by opting for an ARM which is easier to qualify for. Rates are temporarily lower than fixed-rates, resulting in lower monthly payments. You can also lower rates by increasing your down payment.

Here are our recommended sources for bad credit mortgage lenders online: See below for the Most Reputable Lenders:
-(updated )-


  When applying for a bad credit mortgage loan, make sure you are current on your existing credit lines. You will want your current credit to be as good as possible.

Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.