Best Mortgage Lenders for Bad Credit

While it used to be difficult to get a loan when you had poor or fair credit, lenders today are more open to the idea of approving loans for people with low credit scores. The right lender can give you competitive terms, low rates, and an easy process all around.

Top Mortgage Lenders for Bad Credit at a Glance:

LenderLoan TypeAPRGet an Offer
LendingTreeFHA, VA, USDA, ConventionalVariesVisit LendingTree

Quicken Loans

FHA, VA or the USDA, ConventionalVariesVisit Quicken Loans

Rocket Mortgage

VA, FHA, HARP, ConventionalVariesVisit Rocket Mortgage

First Internet Bank

VA, FHA, HARP, USDA, ConventionalVariesVisit First Internet Bank

Can I Get a Loan with Bad Credit?

The obvious question most people with bad credit have is “can I get a loan if my credit score is low?” The answer is a resounding yes; you simply need to know where to look. There are several reasons for having bad credit, including:

  • Never building your credit in the first place
  • Missing monthly payments or having outstanding debt or bills
  • Filing for bankruptcy

The former reason gives you a lot more leverage to work with since it means you haven’t been delinquent, just never established your own credit. This could be because you are too young (students), are/were serving in the armed forces, or simply never thought to take out a line of credit. In these cases, lenders are certainly more willing to work with you as you pose no high risk to them. The other 2 reasons are trickier, but you can still be approved for a loan, though the terms will generally vary from a typical loan. Lenders will also take into consideration just how low your score is before making an offer. That being said, the bad credit mortgage market has opened up over the past few years, making it more competitive and driving down the rates. These are all good things for you.

Types of Home Loans for People with Bad Credit

People with bad credit often don't have the disposable income to provide a substantial downpayment on their homes. For this reason, alternative home loans are offered to this clientele. For example, FHA loan providers can give you a downpayment of as low as 3.5%. VA lenders offer fee waivers and lower interest rates and require no down payment. You have a lot of options in terms of the types of home loans available to you even with bad credit.

It is possible to get a mortgage even when you have a bad credit

What Rates to Expect

Of course, having bad credit does come with some drawbacks, and that usually comes in the form of higher interest rates or monthly payments. The plus side here is that FHA, VA, and other government-regulated loans are required to charge lower interest rates, helping people with bad credit afford their loans. For the average 30-year fixed rate loan, borrowers with bad credit can expect to pay approximately 5.481% APR. However, FHA loans can run as low as 3.5% if you have a score of 580 or higher. Lower than that, and you might pay as much as 10% APR.

Rates will vary significantly, though, depending on your individual circumstances, loan terms, and lender. It’s a good idea to compare various offers from several lenders before signing on a loan. You can also get a better rate by paying a larger down payment. This initial payment will lower your loan amount and rates.

Here’s a Closer Look at The Best Lenders for People With Bad Credit Today:


  • Multiple lenders to easily compare offers
  • Mortgage loan calculator
  • Sleek mobile app

LendingTree is a well-known name in the finance industry, and it's a name people like. That's because, with one application, you instantly get access to a huge network of lenders all competing for your business. And, as LendingTree's slogan goes, "When banks compete, you win!" LendingTree partners with some major players in the lending world such as Discover Card. Additionally, because this company partners with so many lenders across the spectrum, you can find just about any type of loan, terms, and options. That means you are more likely to find a suitable loan option that works for your situation and needs.

LendingTree also has helpful online tools like loan and mortgage calculators to help you estimate what price range you can afford to buy a house in, and how much your monthly payments will be based on your inputted information. These are invaluable tools that really give consumers a more educated perspective on buying a home. Learn more about LendingTree’s easy online process.

Biggest Perk: Widest variety of lenders with a single application

Visit LendingTree

Quicken Loans

  • Plenty of home loans for buying or refinancing
  • Excellent personalized phone service
  • Loan repayment terms ranging from 8 to 30 years

Quicken Loans is a huge non-bank lender that offers a variety of loans including FHA, VA, USDA, and jumbo loans. You’ll find a huge range of repayment terms here, making it easy to find the repayment plan that works for you. A neat feature that Quicken Loans supports is purchasable discount points. You can buy these points to lower your interest rate, saving money in the long run.

Quicken Loans also has another benefit: personalized customer service. While many other lenders offer customer service via the phone or online contact form, Quicken Loans makes it a top priority to speak directly to each of its customers. This is a fabulous service because it ensures that you understand all the terms, get all your questions answered, and are never in doubt about any part of your home loan. For someone just starting out or unfamiliar with the loan industry, this is an invaluable service. See what else Quicken Loans can do for you.

Biggest Perk: Personalized service

Visit Quicken Loans

Rocket Mortgage

  • Tech-based banking method for faster, easier results
  • Sleek mobile app
  • Pre-approval in minutes

Rocket Mortgage is the glam child of Quicken Loans. If you balk at the more traditional, old-school phone call methodology Quicken Loans subscribes to, then Rocket Mortgage may be your best choice. This modern-day home loan lender processes your entire loan completely online. Everything from the application form to approval, making offers, comparing rates, and finalizing the deal is done directly through the polished application. It gives borrowers even with bad credit the ability to access and process loan applications with the touch of a button.

Aside from home equity loans/lines of credit, Rocket Mortgage provides every other type of home loan. You can find FHA, VA, USDA, as well as conventional loans to help you purchase or refinance your home. You can also choose between variable and fixed rates (though people with poor credit will generally be given fixed rates). Discover everything Rocket Mortgage has to offer now.

Biggest Perk: Tech-based process for faster easier results

Visit Rocket Mortgage

First Internet Bank

  • Varied repayment plans of 10, 15, 20, 25 or 30 years
  • Maximum closing time is within 40 days
  • Full online banking with mobile app

Most people like the convenience of doing things online. At the same time, for financial activities, many prefer the security of a more trusted institution like a bank. The First Internet Bank takes the best of both worlds and combines them for a unique experience that actually works really well. You’ll get the top of the line security and trusted reassurance of a traditional bank together with the faster, streamlined services of the internet.

First Internet Bank provides a wide variety of banking services including checking accounts, credit cards, and, more relevant to our topic, home mortgage loans and refinancing options. Choose from government loans, such as FHA and VA loans, to get better rates and easier terms. Additionally, you’ll enjoy instant account access via the convenient mobile app that lets you apply and approve loan offers, as well as keep track of mortgage payments. Find out more about First Internet Bank today.

Biggest Perk: Full banking services in one place

Visit First Internet Bank

Having a low credit score doesn’t mean that you can’t get a good loan--it just means you need to come to the right place. Look into the right government-backed programs, as well as into lenders with rates geared especially for getting a mortgage with bad credit. The best lenders for low credit will take into account your overall lifestyle when offering you rates so you can find a mortgage that works for you.


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