Damaged credit
Seriously damaged credit is normally unacceptable for conforming programs, although occasional exceptions are allowed. Conforming loans must have grade-A credit, although A- minus 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.