Bad Credit Mortgages for Rochester Homebuyers

Everyone knows that you need good credit to get a loan for anything – a car or a house for sale in Rochester especially, right? 

Actually, that is no longer the case. Car dealerships offer “second-chance auto loans” and mortgage lenders now have products for people with less-than-perfect credit. If you are among the latter, and you have a steady income that proves your ability to repay a loan, read on. 

The Kris Lindahl Team with Kris Lindahl Real Estate is working with lenders who can help folks like you get approved for a home loan, even if your credit isn’t that great. With our network of lenders your chances of approval are much greater than if you go it alone. 

What is a Rochester bad credit mortgage? 

You’ve most likely heard the term “sub-prime loan” on the news. Sub-prime loans are just a polite way of saying “bad credit loans.” These loans are considered high-risk for lenders so they typically carry a higher interest rate than loans for folks with good credit, but the offered rate will depend on your credit score, your payment history and how much you are willing to pay for the down payment on the home 

Consider your credit score 

If this is your first foray into the world of mortgage lending we understand that you might be a bit confused. Let’s see if we can break it down for you. 

Your credit score is a three digit number commonly calculated by the Fair Isaac Corporation FICO, as the company is commonly known, will take a look at your credit reports from the “big three” credit reporting agencies: Trans Union, Experian, and Equifax. They then use a complicated algorithm to perform their calculations and come up with your FICO score. The possible score ranges are from 300 (the lowest) to 850, the best. Of course the higher your FICO score, the better you’ll look to a lender. 

So, what is considered a “good” score? It’s hard to answer that question since the score that gets the best rates and terms varies by lender. Generally speaking, if your score is 750 and above you’ll be in good shape to receive an attractive offer. If, on the other hand, your score is less than 620, you may be considered a sub-prime borrower. 

Who is the best candidate for a bad credit mortgage? 

Our lending partners are in the best position to analyze your credit data and determine whether you qualify for a bad credit mortgage. The following can be used as a rough guide. Determine if you have: 

A credit score of 620 or lower. 

  • Two 30-day late mortgage payments within the past year. 

  • One 60-day late payment on a mortgage in the preceding 12 months. 

  • Foreclosure within the past 24 months. 

  • Bankruptcy within the past 24 months. 

  • A high debt-to-income ratio. 

We’re happy to introduce you to our lender partners and get you on the road to home ownership, so please contact us, or fill out the form below. We may just be able to help your realize your dream of owning property in Rochester.