Application Center
  Loan Programs

Best Ways for Buying a Home with Poor Credit Using a Subprime Loan

With cost effecting housing, available because of low rates, many consumers have turned to FHA and subprime home loans because they consider more types of borrowers than traditional mortgages. Those with low or blemished credit scores will often find themselves running out of options when looking to finance a new home. Subprime home loans are just one option that helps a person with a low credit score to secure a home loan and allow them to become a homeowner through affordable home financing.

buying a home with poor credit

During the economy that the United States has seen in recent years, many people have run into credit problems. These problems may be cause by past foreclosures, filing for bankruptcy, or late payments on their credit report, and these unfortunate occurrences may cause a person to find themselves unable to achieve home ownership in today's difficult and competitive housing market.

However, there are options out there for people with bad credit when it comes to home ownership, and with FHA mortgages, hard money lenders, and subprime home loans, these people will be able to obtain the home they need through the proper financing. Per multiple financial sources, like the Wall Street Journal and the Huffington Post, subprime home buying is making a strong comeback despite significant regulations from the Dodd Frank laws. Get educated from approved government lenders about FHA credit-score requirements that may benefit your qualification.

How to Buy a Home with Bad Credit Scores

Those looking to obtain a subprime mortgage loan will typically have a credit score that sits under the 620 range, as this number is the one that is most often required by standard mortgage lenders when approving home loans. Qualifying for a house loan with no credit can be challenging but not impossible if you have strong compensating factors that they underwriter may consider. Subprime lending is a term given to financial companies who will lend to borrowers with known poor credit scores or past credit blemishes, and these loans will often have high interest rates to cover the cost of a loss should the borrower default on their loan.

Preferred Loan Type:
Property Value:

Credit Rating:
Property Type:

While these types of loans give borrowers a new option in obtaining a home loan, they will often come with a price through these higher interest rates. A borrower with a subprime mortgage loan will often pay a significantly greater amount for their loan over time as they will be paying extra interest to cover any event that may cause them to miss payments or fail paying their loan back altogether. While this higher cost may not be ideal, it is often appreciated by those who would otherwise be denied a home loan, as they now are able to become home owners when they may not have been approved before.

While other types of loans are available for those with poor credit, subprime mortgage loans are a popular option due to their ease of approval. These types of home mortgages allow those with poor credit a chance in improving their situation and home ownership. Read more and learn about how to secure a home loan with bad credit scores.


Get Help Learning How to Buy a Home with Bad Credit Get a Free Subprime Loan Quote

Home | About Us | Warranties and Terms | Articles

By clicking "Complete My Request" I am consenting to have my info shared with up to four lenders, brokers, CreditOptions, New American Funding, Global Equity Finance, Loan Depot and other business affiliates and for them to contact you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device and/or email, even if your telephone number is currently listed on any state, federal or corporate Do Not Call list. Consent is not required to purchase goods or services from lenders that contact me.

Nationwide offers no cost home loan quotes for people seeking refinancing, home equity, purchase mortgages in the United States. Our affiliated lenders will review the credentials of applicants with all types of credit on FHA, VA, Fannie Mae, Freddie Mac and jumbo products. Not everyone will be approved nor can loans be guaranteed online. This website has no affiliation with any government entities. Filling out this form puts you under no obligations. Mortgage rates and home loan programs are subject to change without notice. There is no application fee from participating lenders or banks. This is not an advertisement for credit. This is not a commitment to lend. Certain state restrictions and requirements may apply.

©2000-2019 - All rights reserved. Nationwide Mortgages