Even though The economy goes through some ups and downs once and awhile, you can always find lenders that are willing to offer auto loans for people with bad credit and mortgage loans for bad credit.

What kind of mortgage loan can I get with bad credit?

Since you have a bad credit score, your options are going to be limited. Typically you can only qualify for what is called an interest-only mortgage. For about 5 years you will make small monthly payments that go directly to the interest on your mortgage. After 5 years, you will need to make the entire mortgage payment. This means your payment will more than double in 30 days. This may sound like a bad idea, but it is a great way to get into a home and to learn how to control your money so you can continue living in the home when the mortgage payment is due.

Where does my credit need to be?

The higher the credit score, the better your interest rates will be. Lenders ask you to come with a credit score of 660 or higher for the best rates. You can qualify for a bad credit mortgage with a credit score of 620, but it’s not the best idea to apply for a loan while you are trying to repair such a low score.

Is an interest only mortgage right for me?

If you have bad credit, you have financial problems that you may not be able to control. Opting for an interest only mortgage payment may only hurt you more. Since your payments are low for 5 years, take that time to get all of your other debts paid. Then you will have enough money to pay for the new mortgage payment that will be due. Don’t get in over your head. Many people opt for properties that they cannot afford because the payments are so low to start with.

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