How To

How to Get a B/C Mortgage

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By eHow Contributing Writer
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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.

Difficulty: Moderate
Instructions
  1. Step 1

    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.

  2. Step 2

    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.

  3. Step 3

    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).

  4. Step 4

    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.

  5. Step 5

    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.

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.

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