Who Are the Best Mortgage Lenders for Bad Credit?

It can be difficult to obtain a mortgage with bad credit, but some lenders are better to work with and are more forgiving when it comes to working with potential home buyers with a negative credit history. 

Citigroup

According to Forbes, Citigroup is sitting in first place for potential home buyers who are trying to get a home mortgage with bad credit. Offering both adjustable rate mortgages and fixed rate mortgages, Citigroup offers ifixed interest rates as low as 4.375 percent (15 year mortgage). For individuals who are having trouble obtaining a fixed rate mortgage, an adjustable rate mortgage may be the way to go. Most people take on an adjustable rate mortgage with the idea that they will buy themselves a little bit of time to clean up their credit before their mortgage rate starts to climb. For example, an adjustable rate may stay fixed for a period of five years, but then may begin to climb up after five years by a specific percentage. Five years is enough time for those with poor credit to work on rebuilding and fixing their credit.

CitiMortgage offers helpful information online to help potential home buyers figure out what size mortgage they should have. You can also check your application status online, which is handy for busy families.
Citigroup is an American-based company operating in 54 countries outside of the United States. They are known for providing mortgage loans to people who have bad credit and who have struggled in the past because of their low credit scores.

Citigroup Center
153 East 53rd Street
16/F, Zone 19
New York, NY 10022
(212) 559-9124

Bank of America

The third-largest bank in the United States, Bank of America also offers mortgage help for people with poor or bad credit. In addition to offering home mortgages to people whose credit isn’t the greatest, Bank of America offers help to current mortgage holders who are facing financial difficulties and are having trouble paying their mortgage.

Bank of America Corporate Office
100 N. Tryon Street
Charlotte, NC 28255
(704) 386-5681

Wells Fargo

Wells Fargo has more than 1,000 branches scattered throughout the United States and has been around for many years. Much of the loan process can be completed on the Wells Fargo website, and customers can sign up to track interest rates via e-mail. Individuals interested in making a new home purchase can take a quiz online entitled, “Find the Right Loan for You,” to determine if Wells Fargo can actually be of help. Wells Fargo offers a variety of fixed rate and jumbo loans without the typical high interest rates to customers who have bad credit. One specialized loan program it offers is a combined purchase and home improvement loan, designed for individuals who would like to purchase a home that needs some renovating.

Wells Fargo Corporate Headquarters
410 Montgomery Street
San Francisco, CA 94103
(866) 249-3302

By Beth Lytle, eHow Contributor , last updated August 25, 2012