- 1). Order your credit report from Experian, TransUnion and Equifax to find negative items that impact your credit score. Also, obtain your FICO score to determine how mortgage lenders will view your creditworthiness.
- 2). Review your credit report for inaccuracies. If you spot an error on a credit report, send a letter to the reporting bureau requesting an investigation. If the credit bureau determines that an item was incorrectly reported, it will remove the item, which may raise your FICO score.
- 3). Save money for a down payment on a mortgage. Although mortgage lenders commonly offer mortgages to customers with high credit scores for little or no money down, getting a bad-credit mortgage may require a down payment of up to 20 percent of the purchase price.
- 4). Contact lenders in your area to find out if they offer mortgage loans to people with poor credit scores. Some traditional lenders offer programs to help credit-challenged customers obtain mortgage loans.
- 5). Search online for mortgage lenders that provide bad-credit mortgage loans in your state. Check with the Better Business Bureau before committing to a mortgage loan with an online lender to ensure that the company is reputable and treats customers fairly.
- 6). Find a person with a high credit score, preferably 700 or higher, to co-sign your mortgage loan. Traditional mortgage lenders sometimes approve co-signed loans that they would not otherwise provide for customers with bad credit.
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