With respect to institutional lenders, many sources of mortgage funding will have minimum credit score requirements which are basically quantitative criteria that you have to meet, but they will also look at the recent credit history to see how payments are being met, which can be more of a qualitative assessment by a mortgage underwriter.
There can be times when there are issues on a personal credit report that are in error which are negatively impacting the credit score and history and basically reflecting a poor credit profile which may be false.
In these situations, its going to be important to not only try to correct the error with the credit reporting agencies, but to have as much supporting documentation available to you as possible to support your position. Then, when we approach targeted lenders with your poor credit profile, we can try to explain the circumstances and/or error so that the mortgage underwriter has something further to base their qualitative assessment on.
Once credit drops below the minimum credit score requirements of the main line mortgage lenders, the sources of funding available to you will narrow down to sub prime institutional lenders such as certain trust companies and private mortgage lenders which can be individual investors, syndicates, and mortgage investment corporations.
The key take away is that its important to have a clear picture of your credit profile before you ever apply for financing so that you are in a position to proactively address, support, and/or defend the issues that show up that are causing your credit to be poor.
As a mortgage broker, my role is to clearly understand your credit situation and then identify the best sources of mortgage financing for your particular circumstances and work with you to get the application submitted, understood, and approved.
If you have poor credit and are in need of mortgage financing, I suggest that you give me a call so I can quickly assess your situation and provide relevant poor credit home mortgage options that can meet your needs.