Credit Challenges?

Sometimes life throws us some curveballs

If you have had credit challenges in the past, it may be more difficult to get a mortgage, but it is not impossible. Here are a few steps you can take to improve your chances of getting a mortgage despite your credit challenges:

  • Check your credit score and report: The first step is to check your credit score and credit report to see what is causing any credit challenges. You can request a copy of your credit report from the three major credit reporting agencies: Equifax, Experian, and TransUnion. Make sure there are no errors or incorrect information on your credit report, as this can negatively impact your credit score.

  • Repair your credit: If you have negative items on your credit report, such as late payments or high balances on credit cards, try to improve your credit by paying your bills on time, reducing your balances, and not applying for new credit. It may take some time to see an improvement in your credit score, but with patience and diligence, you can rebuild your credit.

  • Consider an FHA loan: If you have a lower credit score, you may be able to qualify for a Federal Housing Administration (FHA) loan, which has more lenient credit requirements than conventional loans. FHA loans are insured by the government and may be easier to qualify for, even if you have a lower credit score.

  • The SJ Home Loan Team specializes in working with borrowers with credit challenges: We offer more options for borrowers who have had credit challenges in the past and are willing to work with you to find a mortgage solution that meets your needs.

  • Get a cosigner: If you are unable to qualify for a mortgage on your own, you may be able to get a cosigner who has a good credit score to co-sign your mortgage with you. This can improve your chances of getting approved for a mortgage, as the lender will consider the creditworthiness of both you and your cosigner when deciding whether to approve your loan.

It’s important to remember that getting a mortgage with credit challenges will likely be more difficult and may require more work on your part. However, with patience and determination, it is possible to overcome your credit challenges and get the mortgage you need.