Your Questions About Mortgage Loans For Bad Credit

Susan asks…

How do I write a letter to a mortgage loan company explaining bad credit and late payments?

I am trying to apply for a mortgage loan to get a house. I just got out of the military and was deployed for 3 of the 4 years and sometimes I didn’t pay bills. How do I explain that. I have already started to pay bills off and fix my credit.

John answers:

I don’t know if it will help to give them reasons you didn’t always pay. If you think it will help explain that you couldn’t get your mail out due to being in a war. If you didn’t have a support system at home like parents that could handle your accounts while you were deployed explain why.
You may have to wait to buy a home until you have good credit and are out of debt.

Helen asks…

I want to know everything on taking out a mortgage with little or bad credit?

I want to start flipping houses. I need to know everything about taking out a mortgage loan with LITTLE to BAD credit and what do you know about getting a loan on a For closer. I make 2500 a month and have the money monthly and the man power and a GREAT sales man to back me up now I just need the LOANS. PLEASE HELP!

John answers:


I tried the program for poorcredit with OX publishing.. It’s on the first page of this particular site. I signed up with an opening line of credit and it showed on my credit report as good standing.. Credit lines are from 5k to 10k with bad credit, they approved me!

Good Luck.

George asks…

Poor credit mortgage loans in NJ?

I found a condo in NJ and I am looking for a mortgage loan but I have really bad credit (400s-500s). Any lenders in NJ that anyone has had experience with getting people with bad credit a home loan? I have a good job and i am working on my credit.
actually i just found out my credit is 580… will any lenders willing to work with me in NJ? i called country wide and they couldn’t help me.

John answers: – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

Thomas asks…

Bad Credit Mortgage/FHA Loan?


I’m trying to get some answers on a very simple question….. Is it possible to get a Mortgage/FHA Loan with a bad/poor Credit Score? I’ve been reading all types of forums and blogs on this and I’m not really getting anywhere. The thing is most of my past credit issues are going on 2 years of age or more. Should I pay them off or leave them be? I’ve read that if some things on your report are over 2 years old you shouldn’t pay them off because it will update it and hurt me even more. Is this true? I have no clue. The home I’m looking at right now is only $40,000 and I make nearly $24,000 yearly gross and I have plenty for a down payment. Should I just get all my information together and apply for an FHA Loan and cross my fingers?? Pretty much what I’m asking is, are there companies/lenders that don’t really punish you for bad credit as long as you can prove that you can afford the loan??

John answers:

Most lenders will require you to pay off past collections and Judgments in order to qualify for the loan. Why shouldn’t you be denied credit if you have credit out there that you have not paid off?

Donna asks…

If a person is unable to get a Mortgage loan due to bad credit and, existing debts…….?

Will the interest rate still be high when the existing debts are paid off and, finally is eligibly for a Mortgage loan?

John answers:

I gather the scenario is – person does not qualify now, so doesn’t buy house…person spends some time repairing credit..person repairs credit and is now eligible for mortgage…

At first, when the person is eligible, he/she will probably need a 20% deposit and encounter high interest rates. However, if the person continues to wait and rebuilds credit further, the required interest rate will begin to fall. It is possible that as the credit continues to be repaired, the required deposit may also fall, but that will also be dependent upon outside factors down the road (the economy, lending practices, etc.).

If when you first can qualify the rates seem high, wait and keep on rebuilding credit – there is no profit in taking a high rate mortgage just to buy a house – you could end up paying much more in additional interest than you earn in appreciation.

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