Bad Credit Mortgage Loans

Bad Credit Loan Programs

Bad Credit Mortgage Loans

A substantial percentage of consumers fell victims to the 2008 real estate and credit meltdown and devastated their credit. Million of Americans lost their jobs and businesses.  The recession is supposedly over but the economy is not recovering as well as it should.  The real estate and credit meltdown of 2008 was more of a repeat of the Great Depression than the Great Recession of 2008.  Millions of Americans lost most of the equities in their homes.  Those who planned on retiring were forced back to the work force.  Bankruptcies and foreclosures soared to historical highs and those two words, Bankruptcy and Foreclosure, became household names.  Prior to 2008, not too many people knew of folks who have filed bankruptcy or had a foreclosure.  However, after the Great Depression of 2008, every American knows of folks who have filed bankruptcy or had a foreclosure.


Now since the economy is slowly recovering, home sales are back active again due to FHA insured mortgage loans.  The FHA mortgage loan program has enabled folks with prior bad credit and those who have had a prior bankruptcy and foreclosure be able to be homeowners again.

Bad credit mortgage loans via FHA loan programs

I specialize in bad credit mortgage loans in California, Illinois, and Florida.  Everyone who has a 580 credit score, two years job longevity, and 56.9% debt to income ratio can qualify for a mortgage loan.  How bad can your credit be to qualify for bad credit mortgage loans?

Minimum bad credit mortgage loans requirements

I can offer bad credit mortgage loans in California, Illinois, and Florida with the following minimum requirements for bad credit mortgage loans:

1. Bankruptcy: 2 year waiting period after the discharge date of bankruptcy.  This is a Federal guidelines and there are no exceptions.

2. Foreclosure: 3 year waiting period from the date of the sheriff’s sale or the date the borrower’s name was transferred out of their name into the bank’s name.

3. Short Sale or Deed in lieu of foreclosure:  FHA mortgage loan guidelines will treat a short sale or deed in lieu of foreclosure as a regular foreclosure.  However, a home buyer can qualify for a conventional mortgage loan after 2 years of a short sale or a deed in lieu of foreclosure if they can put a 20% down payment.

4. 530 FICO credit score minimum.  If you have a minimum of a 530 to 580 credit score, you will be able to qualify for a FHA mortgage loan but you need to have a 10% down payment.  Over 580 credit scores will qualify you for a 3.5% down payment FHA mortgage loan.  620 minimum credit scores will qualify you for a 3.5% mortgage loan with much favorable mortgage rates.

5. Closing in 15 days.

6. Non-traditional credit accepted.

7. $100 down payment for HUD owned homes.

8. I can offer you the lowest mortgage rates possible since I am a correspondence lender to over dozens of wholesale lenders.  My rates are generally lower than bank rates.

9. Home sellers can contribute a seller’s concession up to 6% towards home buyer’s closing costs including taxes, insurance, and mortgage insurance premium.

10. I only offer pre-approvals and not pre-qualifications.  All pre-approvals are based on Fannie Mae’s Automated Underwriting System DU.

11. Fixed rate mortgages and adjustable rate mortgages without pre-payment penalties.

12. We do not charge any fees.  Our fees are paid by our wholesale mortgage lenders.

13. Can flip residential homes into FHA mortgage loans without 91 day waiting period.

14. 580 minimum credit score for 2 to 4 unit residential properties.

15. Gift for down payment does not have to be a family member.  As long as it is a close friend who you have known for at least 5 years, it is alright.

16. Available after hours and available 7 days per week.

17. Minimum of 530 credit scores for manufactured homes.

If you have had prior bad credit and need a mortgage loan in California,  Illinois or Florida, please contact me at 262-716-8151 or email me at  You can also subscribe to our daily mortgage and real estate newsletter at .

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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