Luckily, those searching for a home mortgage loan will find that within one day after their bankruptcy discharge home loan financing will indeed be available to them. Within the mortgage business lending to borrowers with very, very bad credit including bankruptcy and foreclosure can go by several names including the sub-prime market, b,c,d credit lending or simply bad credit home loans. The wonderful side of this industry for debtors is the fact that it exists. On the other hand individuals with bad credit must understand that what will be expected from them and that what will be available for them in the sub-prime mortgage market bares little resemblance to the type of home mortgage loan available to a borrower with perfect credit. Before attempting to obtain a home mortgage loan, borrowers should first understand exactly where they stand from a credit point of view.
Lenders categorize borrowers using two systems.
The first mirrors standard grades used in school. Borrowers' credit will be evaluated and given a grade, where A is the best, B will be credit showing a bit of tarnish, C represents fairly bad credit, D means very bad credit, occasionally I've even seen some F's. I have included a chart estimating where someone's credit will fit into this system. Remember that humans evaluate most of these credit reports, with the result that some credit evaluators will assign different grades to the same borrowers and that some lenders may assign more or less importance to certain types of negative items on a credit report. The next type of scoring model more closely resembles an SAT score, with 800 being near perfect and 400 approaching as bad as it gets.