Can I Get A No Down Payment Mortgage With Bad Credit?

Can I Get A No Down Payment Mortgage With Bad Credit? The answer may surprise you. Bad credit won’t exclude the possibility of a no down payment loan.

After the lending melt down it’s become more and more difficult for borrower’s with less than perfect credit to secure home loans. This is especially true in the case of little or no down interest loans. Due to the high rate of foreclosures lenders are becoming more and more selective about what borrowers they approve for a home loan, particularly a no interest home loan. It may be possible to secure a no down payment mortgage with bad credit, but it will likely cause other difficulties.

Can I get a no down payment mortgage with bad credit, and get a low interest rate?

Unfortunately for a borrower with bad credit securing a no down payment loan will almost always mean a significantly higher interest rate. The lender sees the loan to a borrower with bad credit as a higher risk than making a no down payment loan to a borrower with good credit. To make up for the increased risk the borrower will usually charge a significantly higher interest rate than would be charged to a borrower with good credit.

I’ve declared bankruptcy. Can I still get a now down payment mortgage with bad credit, and a bankruptcy?

Unfortunately it is very unlikely that a lender will extend a no down payment loan to a borrower who has a bankruptcy on their record. Should a lender decide they wish to take the risk and extend a no down payment loan anyway there will likely be a very high interest rate attached. Also, the loan will likely be for an amount much lower than if a down payment was securing the mortgage loan.

Related posts:

1. Does Poor Credit History Disqualify Me For A Home Mortgage?
2. What Do I Need To Know About Bad Credit Mortgage Financing?
3. Can I Get A Bad Credit Mortgage Loan With A Small Down Payment?
4. Can I Lower My Interest Rate Even Though I Have Poor Credit?
5. Does A Poor Credit Mortgage Cost Me More Money?