It is a common misconception that people with bad credit are unable to get a mortgage loan. Or, in the event of approval, the borrower may have a bad interest rate or a loan with a balloon payment at the end or other not-so-great terms. However, this is not the case anymore. If you have bad credit or no credit, if you’re yearning for a comfortable life you can still get mortgage loans with acceptable terms. Use the following three tips to help get you into the home of your dreams.

Manual Underwriting

With a typical quick cash loan, the lender will pull your credit file, ask for a ton of documentation from you, and let their computers take care of the approval process and determining your credit-worthiness. However, if your circumstances have changed since your credit file got its blemishes, find a lender that will manually underwrite your loan. This means that the lender will take into account your changed circumstances, such as divorce, marriage or increase in income, and use this to underwrite your loan instead of relying only on your FICO score or payment history.

Clean Up Your Credit

While you are in the process of obtaining a mortgage, you shouldn’t let your efforts to clean up your credit report fall to the wayside. Continue to make payments on time, pay off old debts and keep from racking up new debt. These things will all help you get a great mortgage loan. You should also sell unwanted possessions and put as much money in the bank as possible.

Non-Traditional Loan Sources

Sometimes your friendly neighborhood banker or mortgage loan officer may not be the best choice for a loan; this is especially true if you have poor credit. Consider non-traditional loan sources, such as crowd-funding or peer-to-peer lending programs. Grants and non-traditional loans are also out there for people meeting certain criteria. The internet is a wealth of information on these options, just make sure you investigate and don’t get taken by any scams.

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