Lenders look at many factors when considering a loan. Your FICO Score (that is the score the credit bureaus give you that reflect your rating), your length of credit history (a longer and more stable credit history is a plus whereas someone just starting out will have more problems with bad credit), your paying habits (are you ontime with your credit), your debt/income ratio score (how much debt do you have per your income), your income level (do you have the means to pay back the loan), job stability, marital stability, age and so on.

THey will often weigh in many of these factors. Many lenders will insist that you pay off bad credit items (we were forced to pay off old collection accounts) before closing, or be in the process of paying them off. Lenders will often ask you to write a letter of explanation for each bad item. (We were required to explain in writing all bad items and late payments). The lender if they do agree to give you the loan may charge you a higher interest rate for taking the risk.

So it will depend.

Please check out www.ripoffreport.com and do a search of lenders. People with questionable credit history will often attract the subprime lender (do a search of subprime lending to understand some of the pitfalls and the predatory lending practices that they have).

Often it is best to wait until you actually have good credit to buy a home.

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