Seriously damaged credit is normally unacceptable for conforming programs, although occasional exceptions are allowed. Conforming loans must have grade-A credit, although Aminus credit is acceptable when compensating factors are present.
For all other applicants, non-conforming loan programs are available with a variety of alternative financing opportunities. It is even possible to provide refinance a home from foreclosure, as well as providing motgage financing for borrowers with recent bankruptcies.
Damaged credit borrowers face even higher interest rates than other non-conforming programs. Remember, however, that you should always view high interest rates as short-term. As your credit grade improves, you will be able to refinance to lower rates and better terms.
Please consult the "Damaged Credit Options" and "Repairing Damaged Credit" articles for more information. Specific articles on borrowers with bankruptcies or foreclosures are also available.
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