Mortgages and Refinancing With Bad Credit

There are many reasons that you can have “bad credit”:

  • Overextended Credit Cards
  • Failure to pay an existing or previous loan
  • Bankruptcy
  • Past Due & Delinquent Taxes Owed
  • Legal Judgments
  • Medical Bills
  • Collection Agency
  • Other

There are ways to improve your credit – examples of things that you can do include:

  • Paying a little over the minimum payment – even $1 over the minimum payment gets recorded.
  • Reduce Balances – easier said than done but it will really help!
  • Do not max out your credit cards
  • Don’t open new credit card accounts, but do not close any that are already open.
  • Take a look at your credit report and fix any errors as soon as you can.

It will take some time to get back on track and improve your credit score, but it will be worth it! Alternatively, there are loans available for borrower(s) with less than perfect credit for those borrower(s) who do not want to wait for their credit score to improve. These loans will not have the lowest rate but they will allow borrower(s) to purchase a property. Remember that these loans can be refinanced into lower rate loans as soon as credit scores improve.


  • Potential of re-establishing or improving credit score if you pay your mortgage on time
  • If funds are used to consolidate debt it is possible to reduce overall monthly payment as usually the rate is a lot lower than that for credit cards. This can also help with cash-flow.


  • Slightly higher interest rates (compared to those that a borrower with a good credit score would get)
  • May require larger down payment

We have helped borrowers with less than perfect credit. Please contact us with your specific situation – we do not charge for consultation and there is absolutely no obligation or cost to you.

For more information, contact out knowledgeable brokers at Loan People USA.


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