The below items are the general guidelines that can be used as a rough rule of thumb when determining whether a consumer may be a candidate for a bad credit loan:
- A credit score below 620
- Two or more delinquencies of 30 days on a mortgage in the past 12 months
- One delinquency of 60 days on a mortgage in the past 12 months
- A charge-off or foreclosure within the past 24 months
- Bankruptcy within the past 24 months
- Debt to income ratio is over 50%
- Inability to cover family living expenses in the course of a month
However, it is overall creditworthiness that is not just determined by credit scores. A couple of missing credit card payments does not mean that a consumer is doomed to receive double-digit interest rates. The only way to know where one stands is to apply for the loan and speak to a professional specializing in mortgage loans
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