If you have bad credit, you can still get a mortgage. Lenders use FICO and VantageScore models to determine creditworthiness. FICO considers 580-669 fair, while VantageScore rates 601-660 as near-prime. Improving your credit, saving for a down payment, and lowering debt can help you secure a mortgage.

Mortgage lenders look at more than just your credit score. Factors like income, debt-to-income ratio, and down payment amount also play a role in loan approval. Specialized programs and state incentives for first-time home buyers can help those with bad credit qualify for a mortgage.

To increase your chances of mortgage approval, review your credit report for errors, dispute any mistakes, and pay down debt. Consider adding a co-signer or co-borrower if needed. Some online lenders and credit unions offer more flexible requirements, making it possible to qualify with a lower credit score.

Understanding the total cost of a mortgage is crucial. Lenders may charge higher interest rates, require a larger down payment, or add mortgage insurance for lower credit scores. Look at the loan package as a whole, including origination and other fees. Specific home loans like FHA, VA, USDA, and conventional loans have varying credit score requirements and down payment options.

Government-backed loans like FHA, VA, and USDA are easier to qualify for with lower credit scores. These loans have different minimum credit score requirements and down payment options. Be prepared for higher interest rates or fees with a lower credit score. Lenders use these to offset the risk of lending to those with bad credit.

Read more at Yahoo Finance: Can you get a mortgage with bad credit?