You can establish or restore your credit by making intelligent choices about your house and budget. A mortgage lender that does not require you to have good credit to get a loan has a program for you. If you’ve experienced financial hardships and need more time to rebuild your credit, ask if they offer deferred interest programs or other repayment methods that will enable you to maintain monthly payments while repaying the debt over an extended period.

 

You may be able to buy a home without perfect credit because reputable partner lenders judge lending risk in many other ways besides your FICO score. To determine a fair loan amount and terms for a mortgage, lenders will consider your income, marital status, assets, and debts. Lenders also consider how long it will take for you to repay your home loan.

 

If you are applying for a mortgage to purchase a home that you do not yet own, the lender may want to verify that the property is free of any liens or judgments against you.

 

There are thousands of lenders in every region of the country, so there’s likely one nearby where you can get prequalified or referred by your Realtor or another agent.

 

Is a no-credit-check mortgage right for you? Consider these key points:

 

No credit check loans may not be available if you have received a mortgage in the past three months. However, it is possible to get an exception when you can prove that the prior mortgage was not used responsibly. Your lender will decide if this applies to your situation. If you have poor credit, this may be your only option for getting a home loan. There are also other options to consider. Many lenders offer 30-year fixed-rate mortgages that require reasonable monthly payments and a substantial down payment.

 

Some mortgage lenders may offer an interest-only payment program, where you only pay interest on your loan for some time. This may be an option for you so that you can pay back the debt in about half the time. It also allows you to immediately build equity in your home because all extra monthly payments go toward building equity in the home instead of being used to repay the principal amount of the loan.

 

Consider getting a reverse mortgage if you are over 62 and have enough equity built up in your home. A reverse mortgage is a lump-sum or monthly cash payment based on what your home is worth, not what it costs to repay the loan.