So you want to get a home loan. But unfortunately, your credit history hinders you to get one. Having a bad credit can lead to being rejected by home loan lenders. It’s because it shows that you’re not responsible enough with your money and might neglect paying for your home loan in the future. Don’t lose hope! There are still ways in which you can get a home loan despite of your despicable credit. Just follow the steps below on where to get home loan with bad credit, and still buy your dream house!

Verify first

Take a look at the report submitted before looking at other options. The bank must have overlooked a factor or worse, there’s an error in the credit report that you have submitted. See if there are any errors and ask the bank to take a look at it again.

Improve your credit score

You can also try to improve your credit score, if you don’t mind waiting. You can do so by following these tips:home loan with bad credit

  • Pay your bills on time – Pay your bills and rent early to look clean at the lenders.
  • Low on credit cards – Have a minimum balance on your credit card debt.
  • Do not open credit cards – Cease to open credit cards that are not needed.
  • Management – Manage your credit and expenses well.

Opt for credit unions

If the banks won’t give you loan, the look at other alternatives. Take a pause and take a look on credit unions. Credit unions are similar to banks but are owned by their members who are working in the same industry or living in the same location. Credit unions are nonprofit organizations that pass along earnings to members in the form of lower fees and higher customer service. Ask in your office if you have any credit unions that you can join to.


Get a co-signer who has clean credit and has a stable monthly income. The co-signer can be a friend or a family member. Perhaps someone with good credit would be willing to co-sign a loan with you. Someone who knows your situation and trusts your ability to repay the debt would probably be willing to take a chance on you. Just make sure that you won’t ruin your relationship with your co-signer by not paying debts early on.

Take a loan from family or friends

For better or for worse, family and friends are there to help. Why don’t you just opt to get your home loan from them? To avoid complications later on, create a written agreement that includes the interest rate, payment terms, any collateral you put up for the loan, and what happens if you fail to repay the debt. Remember, this type of loan is for your last resort only. So try seeking other options now!

Remember to learn from your previous mistakes. Learn from them and try to move on from these financial mishaps.