Mortgages by Niels

Bad Credit Mortgage Bolton

Bad credit mortgages is a term used to describe mortgages that get funded when credit is considered bad, poor, sometimes even fair. There are products out there with alternative lenders that will consider funding an inquiry that is considered a bad credit mortgage. These products that can fit your current standings and we create a solution that compliment our clients overall financial strategy. We are your bad credit mortgage team in Bolton to support you with your short and long term financial goals. 

    Can I buy a house with under 500 credit score?

    When it comes to buying a house, a credit score is important, and it is not a deal breaker to start the process. If you’re in the 500 range you’re 150 points away from fair credit and 200 points away from good credit. Institutional lenders typically stay in the range of 620 and up. Alternative and private lenders will consider credit that is 500 and under.

    Can I get mortgage with bad credit?

    You can obtain a mortgage with bad credit. Your credit score is not the only thing that alternative and private lenders take in consideration. Here are a few things that these lenders will also consider: how much is your down payment, your overall debt, your income, and if any debts are I collections. These factors can support you with finding the right lender for you even with bad credit.

    What credit score is too low to get a mortgage?

    If you score is below 550 you’re in the considered range of bad credit. There are lenders that will consider lending mortgages if you’re below this score and to see what is possible with a score below 550, they will consider other factors to understand your overall situation. How did you get there and are there circumstances that can have you recover your score over time. This way they can give you the relief you need to recover to a higher score and move you into a different product down the road to reflect your circumstances then.

    What is the highest mortgage rate for bad credit?

    For bad credit mortgages rates can vary based on your overall file. Considering your income, overall debt, down payment or loan to value (if you own a property), and if any debt is in collections. Alternative lenders rates can range from 3-6% and private lender rates can vary from 6-15%. Considering your personal file items and the property at interest, the combinations of these two will be considered to find what rate will work for the interested lender.

    What is the fastest way to rebuild bad credit?

    Some of steps you can take to remedy your current credit score are items such as

    • Making the minimum payments on your credit cards. If you can show you’re able to pay on time each month this will avoid some of the biggest hits on your credit.
    • See how you utilize your credit, the sweet spot is 30% utilization. Higher utilization will result in lower credit points.
    • Consider a secured account where you leave cash in, which will act as collateral and then borrow a percentage of that amount for credit. This will report as good credit practise and help build your credit score, especially for those who are having troubles being approved for credit.
    • You can ask a family member or friend to open a joint account to build back your credit and or help you access credit you would not otherwise on your own.
    • Apply for credit when it is not above your means of sustaining paying that credit. Do not live beyond your means. As well the more you apply for credit, there will be credit checks that brings your credit score down, limiting these hard inquiries will keep your score higher.
    • If you’re in deep waters of debt and can not find yourself on a way out, consider credit counseling, a debt management plan or debt consolidation.  

    How can I raise my credit score 200 points in 30 days?

    Raising your credit score by as much as 200 points in 30 days is a not a guarantee, and there are some steps that you can take to improve your score drastically
    Take on more credit accounts, if you have only a few credit accounts. Adding a mix of credit accounts will have significant positive impact on your score.

    • Pay down high credit card balances, to as much as 30% utilization.
    • Starting with your smaller balances and then the higher balances is called the debt snowball method. Some will take on the accounts with the highest interest rate first, this is called the debt avalanche method.
    • Always make on time payments, always. Even if you do poorly on the other items, do your best to always make on time payments. This part makes up 35% of your FICO score 8. FICO score 8 is the structure that most know as your credit score when it comes to applying for credit or obtaining a mortgage, with the score ranging between 300-850.
    • Keep the credit accounts that you already have. Some make the mistake of paying of your balances and closing accounts. This will not support you with bringing up your score. Factors such as length of credit history play a roll. Often when you’re maintaining a report with making your payments on time and keep a good utilization, often your credit company will reward you with increased credit which allows for more utilization.
    • Dispute anything on your credit report that is incorrect. There are times when your credit report will not reflect that are the actual facts of today. It can be the case when old credit accounts are not closed on your report, when in fact you have closed them. Sometimes creditors inaccurately report your credit to the credit bureau. The credit bureau is not infallible, and checking in on your credit at least once a year is recommended.
    • Take the responsibility to keep your credit correct. When you’re putting in a dispute an error on your credit report you can do this by including in your letter:
    1. Your identifying information (name and address).
    2. A clear indication of the error you have found.
    3. Include any documentation that will support your dispute. Credit bureau’s generally do not take longer than thirty days to complete their investigation and share the results with you.

    All in all, building credit is a marathon, not a sprint. Focus on being consistent and you will see the pay-off over time. Do not neglect your finances and exercise your financial well-being often.

    Bad Credit Mortgage
    Below 550 65%
    Poor Credit
    550-649 76%
    Fair Credit
    650-699 82%
    Good Credit
    700-749 88%
    Excellent Credit
    750-850 100%
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