How to Get a B/C Mortgage
If you have bad credit or missed some mortgage payments in the past, you probably think it's simply not possible for you to get a mortgage. But there are mortgage programs out there for people just like you. These are called B/C mortgages and they are not as difficult to obtain as you might think.
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Instructions
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Possess a credit rating score of 620 or below to be eligible for a B/C mortgage. Higher scores on credit reports will leave you eligible for a loan from a conventional mortgage lender.
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Make habitual late payments that will show up on your credit report. An occasional late payment that can be explained in a letter will not leave you eligible for a B/C mortgage.
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File for bankruptcy. Subprime mortgage lenders will consider you for a B/C mortgage if you have recently filed for bankruptcy (generally in less than the past four years).
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Foreclose on a home. If the reason for the foreclosure was not due to extensive medical reasons, a job loss that substantially affected your ability to make payments or a divorce (all reasons that will be considered and possibly accepted by a conventional lender), then you may be able to get a B/C mortgage.
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Find a subprime mortgage lender. Unfortunately, many lenders do not like to get involved in B/C mortgages. Your best bet is to utilize the Internet to locate a subprime mortgage lender near you.
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Tips & Warnings
Some "B" loan programs allow you to rebuild your credit in two or three years and have the ability to switch to a more conventional mortgage.
Use a mortgage broker to help you find a B/C lender. Brokers have access to many loan programs that you might not find on your own.
B/C loans have higher costs and higher interest rates than conventional mortgages.
