Can I get a mortgage with bad credit?

In California, the answer to the question “Can I get a mortgage with bad credit?” is ultimately dependent on the lender. Lenders in the state typically base their decision to lend on an individual’s credit score. Credit scores range from 300-850 and can be improved over time. Generally, individuals with a credit score below 600 are considered to have a subprime credit score. However, this does not necessarily mean that individuals with such scores cannot get a mortgage. Borrowers who have a subprime credit score and a low income may be able to qualify for a California Housing Finance Agency (CalHFA) loan. The CalHFA is the state’s affordable housing finance authority and offers multiple loan programs to those who qualify. These CalHFA loan programs are primarily intended to serve low- to moderate-income borrowers, and may require a cosigner, more stringent qualifications and/or higher interest rates to compensate for the increased risk associated with a borrower’s bad credit. In addition to CalHFA, there are other lenders who may extend mortgages to borrowers with bad credit. These lenders may look beyond an individual’s credit score to other factors in an effort to assess risk. Factors such as an individual’s income, reserves, employment history, loan to value ratio and other factors may be considered in addition to credit score. Ultimately, individuals with bad credit may still be able to obtain a mortgage in California. However, it is important to understand that it will likely be more difficult and expensive than it would be for those with good credit. It is important to review the terms, interest rate, and fees associated with a loan before signing and to work on improving one’s credit score to qualify for better terms in the future.

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Can I get a mortgage with bad credit?

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