by Debbie Martin, Licensed Loan Originator | Fort Myers Mortgages

Buying a Home With Bad Credit

Even the best of people can suffer from a case of bad credit. Lower credit scores make it more difficult to get approved and receive loans and credit cards, and, if you can get approved, interest rates can be astronomical.

The good news? Individuals who have bad credit still can become homeowners. It is possible to get a mortgage with a questionable credit score.

What exactly does it mean to have bad credit? Experian, a national credit recording agency, your credit score, also called a FICO score, categorizes credit scores by number.

With a score of 800 or higher, loaners will view your score as exceptional. A score 740-799 is considered very good. 670-739 is good. 580-669 is fair and 579 or lower is very poor. A credit score of 620 is considered the cutoff for getting a mortgage from traditional lenders.

Experian states that those in the “fair” range are considered subprime borrowers, meaning they present a higher risk to lenders and will most likely experience higher fees and interest rates Those with a score under 580 will have an extremely difficult time getting approved for any loan.

So how do individuals with bad credit get a loan?

Consider a loan through a private lender. Keep in mind that utilizing a private lender will likely experience higher interest rates and a larger minimum down payment. Lenders can also consider a government-backed loan from the Federal Housing Administration (FHA). Even those with a score of 580 can qualify for an FHA mortgage with as little as 3.5 percent down.

If you’re a service member or veteran with poor credit, you might qualify for a VA loan. VA loans don’t require a down payment but require a funding fee of typically 2.15% of the loan value.

The truth is, everybody’s situation is different. The best way to secure a loan with a questionable credit score is to sit down with a professional who can provide you with a personal plan that will lead you to a mortgage solution that works for you and with your budget and lifestyle.

Connect with me at or by telephone at 239-470-6086 to discuss your options. I am always prepared to work alongside you to help rehab your credit score and secure a mortgage loan for you and your family regardless of your credit score.

Debbie Martin is a locally licensed loan originator (NMLS #1057755) with Florida Mortgage Funding Group, providing experienced customer-service based mortgage service.