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How do mortgage companies give people loans if they have bad credit?



How do mortgage companies give people loans if they have bad credit?

Usually they would have a very high interest rate.
Get a FHA loan. This loan does not depend on a borrowers credit score. The banks buy the loan from FHA, because FHA guarantees the loan.
I did it.
Or if they come in with a big down payment. That would
protect the bank if they default.
They take a risk, but they charge a higher interest rate

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