Lenders require that borrowers have insurance on their mortgages in case the borrower defaults and the property must be sold. This insurance protects the lender's investment and allows the lender to offer lower interest rates.
Most banks require a credit score of 600 or higher for a conventional mortgage. However, there are a few lenders who will make exceptions for credit scores that are lower than 600.
Arguably the best part about private mortgage lenders is that they have no minimum credit score requirement. Whether you have bad credit or no credit at all, you can still get the money you need.
Bad credit mortgages typically have higher interest rates and down payment requirements than conventional mortgages, but they can still be a good option for people who need to buy a home.
