Many people obsess over their credit scores when it comes to getting a mortgage. While having a high score is great, if your score is over 700, it doesn’t really matter whether it’s 710 or 820! The real challenge starts to arise when your credit score drops below 650, and if it falls below 600, getting a mortgage can be difficult.

Is a Mortgage Is Still Possible with Bad Credit?

Life can throw curveballs – divorces, business failures, or other events can damage your credit score. But having a lower credit score doesn’t necessarily mean you’re out of the running for a mortgage. You just need to bring strength to your file in other ways. One of the easiest ways to offset a lower credit score is by having a larger down payment.

A Larger Down Payment Can Help Offset Bad Credit

If you can manage to put down 20% or more, you can bypass mortgage insurance, making it easier to qualify for a loan. Also, there are lenders who specialize in working with people who have “bruised” credit, though they typically require a down payment of at least 20%, and sometimes even 25% or 30%. If that’s not realistic for you, there are still options.

Another option is using a co-signer. This is usually is a sibling or parent whose income and credit can help strengthen your application.

Final Thoughts

A low credit score doesn’t mean your dreams of owning a home are over – there are ways to work around it. It can be a complicated process, but that’s where I can help. I am here to navigate these complexities and find the best mortgage option for your unique situation. If you’re looking to get pre-approved for a mortgage to buy a property in Edmonton, fill out my online application. I’m here to help you every step of the way.

About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.