How to Get a Home Loan With Bad Credit

Video Transcript

"Hi, this is Matt McKillen with Innovative Financial Group. The question posed to me today is, How do you get a home loan with bad credit? Well, there's different types of programs available out there to finance a purchase of a home. If your credit is bad, you have to meet a minimum score requirement in order to get approved for a mortgage. Sometimes what I advise my clients when they come to me, if they've had some tarnished credit from the past, like I jokingly call skeletons in the past, but it's still hanging on the credit report, sometimes it's a two step process in order to get them a home mortgage. First step may be to refer them out to credit repair. Now there are a lot of credit repair agencies out there that will take you on as a client. It may be anywhere to a three month process to a six month process. Sometimes it's up to a twelve month process depending on how much trouble credit there is on the bureau. But I have seen in the past where some of the credit repair agencies have been able to clean up old items on a bureau. Sometimes they're reported erroneously. Stuff that's been paid off, it still shows it open. So in all reality, you're better off trying to clean your credit up to purchase a home versus going in with a bad credit score, because ultimately it can affect the interest rate that you're going to pay over thirty years. Again, my name is Matt McKillen, and I'm with Innovative Financial Group."