Bad credit home loans What is a bad credit home loan? A bad credit home loan is a type of mortgage that is offered from a non-conforming or specialist lender that can consider all situations, in particular for those of you with black marks on your credit file. It is designed to help “outside of the box” applications from regular people who don’t meet the bank’s guidelines. Who can qualify for a home loan? Bad credit home loans are generally suited for people who have had something bad happen to them such as a divorce, loss of job, injury or business failure which has resulted in black marks on their credit file. Lenders dislike people who did not want to pay for their defaults or those who keep having ongoing credit problems. Below is the list of the basic qualifying criteria: Small paid default: If you have a small default for less than $500 and it has been paid more than six months ago then we can help you borrow up to 90% of the value of your property. More than one small paid default: If you have less than $1,000 in paid defaults from financial institutions (e.g. banks) and less than $500 in paid defaults from non-financial institutions (e.g. phone companies) then you can borrow up to 85% or possibly 90% of the property value. Major paid defaults: If you have up to $3,000 in paid defaults we are able to help you borrow up to 80% of the property value with a prime lender, or up to 100% of the property value if you have a security guarantee from your parents. Larger paid defaults up to $10,000 can be considered on a case by case basis if you have a very good explanation which is backed up with strong evidence. Unpaid defaults: If you have any unpaid defaults then you can only borrow 80% of the property value, this is with a non-conforming lender. Judgements / court writs: If you have any judgements / court writs then you can only borrow 80% of the property value, this is with a non-conforming lender. Part IX agreement: Please refer to our Part IX agreement page for more information. Bankruptcy: Please refer to our bankruptcy mortgages page for more information.