Bad Credit Mortgage Loans Online - How Your FICO Credit Score Can Affect Your Loan Approval

When applying for a mortgage loan if you have a bad credit history. There are a few things you should know about your FICO score that will help know what to expect from mortgage lenders.

With a credit rating below 585, you will need to put at least 10-20% like a down payment on the property. You will not likely be approved for 100% financing at this time.

If you have a credit score of between 585-599, you will probably need around a 5% down payment to get an approval for a home mortgage loan. You will still want to get your approval from a subprime mortgage lender. You will have to use a lender who specializes in loans for people with "less than perfect credit" or situations making it difficult for a person to get financing for their house.

If you have a credit score of 600 -- 620, you will probably be able to get a good approval for 100% financing. You will also, in this case, still need to use a subprime lender.

With a credit rating of 620 or higher, you may be able not to only qualify for 100% financing, but be able to obtain a lower rate of only 1 - 2 percentage factors above the prime rate.

If you have a current bankruptcy or foreclosure, these estimates should still be accurate within 24 months after bankruptcy, repossession or foreclosure. After 2 years, it becomes simpler to get approved for a mortgage loan, because more lenders will appear at financing you after 2 years, whereas many lenders won't even consider your application until 2 years from time of bankruptcy discharge or a foreclosure. After a 3 year mark in the time of bankruptcy or foreclosure, it becomes even simpler to get an approval, in that many more lenders will consider the application after 3 years.