Bad credit isn’t necessarily a sign of ineptitude and carelessness with money. Sometimes it’s just a matter of luck. May be you suffered through a messy divorce or recently suffered huge failure your small business. No matter what the reason for your bad credit, the fact remains that you still need a place to live.

If you would like to buy a home but are worried about your bad credit, there is nothing to be overly concerned about. People have been known to get mortgages despite their poor credit scores. All you need to do is find a mortgage broker who can access lenders willing to negotiate despite a bad credit score. But you will have to meet certain requirements in order to qualify for a bad credit mortgage.

A potential lender may agree to look at your case for mortgage approval. They will need to make sure that despite your bad credit score, you do not pose any potential financial risk to their institution. You will need to agree to the following criteria before getting a green light on a mortgage.

1.Pay a Higher Minimum Down Payment

If you have perfect credit score, you may get away with paying only 5% down payment on your new home. But mortgage lenders are known for increasing down payment requirements to 15% for people with bad credit scores. So the higher the down payment you are willing to pay, the more likely it is that you will be able to qualify for a mortgage.

2.Provide Proof of Sufficient Income

This is important because your lender wants to know if you are financially capable of handling the responsibility of mortgage payments. This is figured by making use of a bit of mathematics. Lenders assess your Gross Debt Service ratio as well as the Total Debt Service ratio. Together, these two are good indictors of whether you will be able to afford a home or not.

3.Have Your Property of Choice Appraised Professionally

If you can’t make your mortgage payments for some reason, the defaulter can take possession of your property and sell it off to recover their investments. So your lender will require written proof from a professional appraiser stating that the property is indeed valued more than the original mortgage amount.

4.Find a Reliable Co-Signer

If you have bad credit history, chances are that your lender will need a co-signer to guarantee the agreement even if you have good income and a large down payment. Inform the co-signer beforehand that if you fail to pay the mortgage, they will automatically become responsible for the amount signed for.