Buying a Home with Bad Credit

Learn how you can buy a home with bad credit

Even if you have "bad credit", you may be able to buy a home in Orange County. Mortgage lenders have created many bad credit mortgages for buying a home... some with no money down.

What is considered "bad credit" when buying a home?

Just because you have had some late items on your credit report it does not necessarily mean that you have "bad credit". Mortgage lenders determine your credit worthiness by reviewing your credit report history. Below is the most important items that to help you determine if you have bad credit?

Date of Bad Credit item was last reported

One of the most important items mortgage lenders use to determine your mortgage "creditworthiness" when underwriting a home mortgage is how much time has passed since a negative item was reported you credit report. The general rule of thumb (for most mortgage types) is as follows:

credit scores of less than 620
bankruptcy in the last three years
foreclosure in the last four years
collection accounts, judgments, or liens.
30, 60, or 90 day lates within the last two years.

These types of bad credit mortgage home loans may be used when buying a home in Orange County.

Not sure of your how your credit report is? Get a free credit report online and view it instantly.

Bad Credit Loan Program Description

A bad credit loan is technically referred to as a sub prime mortgage. These types of mortgages are a higher risk to the mortgage lender because of the past credit history of the borrower. Since there is a higher risk, there is a higher reward to the mortgage lender in the form of higher mortgage rates.

These bad credit loans allow individuals to obtain a mortgage for buying a home or mortgage refinancing when they may have been turned down by a conventional mortgage lender or bank.

The basic concept of these types of mortgages is to provide a borrower a second chance to prove their credit worthiness and eventually refinance the mortgage after establishing a perfect credit history for at least two years.

Learn exactly what type of mortgages and how much and what kind of a home loans you qualify for with a free mortgage pre-qualification.

If you this type of mortgage loan does not seem meet your needs, review information on all other types of home mortgages.

If you have any questions about bad credit you may email us at Orange County Real Estate Center

Bad Credit Loan Terms

Sub prime mortgages have various mortgage loan terms available. Bad credit loans can be used when buying Orange County real estate. Below are some basic mortgage loan terms for these bad credit mortgages:

Mortgage Loan Amounts

$75,000 - $2,000,000

Mortgage Loan Programs

2/28, 3/27, 5/25 and 7/23

fixed rate mortgages

adjustable rate mortgages

80 / 15 / 5 and 80 / 20

Mortgage Loan Repayment Terms

15 and 30 year

Maximum LTV of Mortgages

up to 100% financing

If you will be in need of a mortgage loan in the future be prepared and let us track mortgage rates for you with our weekly mortgage rate email.

Before learning more about bad credit loans bookmark this page for future reference.

Please also take a moment to think of the next person you know who may need this type of mortgage loan and email this page to them if you think they would find this mortgage information useful.