
What is financing despite recent credit events?
- Sometimes, borrowers have recently had their credit history impaired, due to certain negative events such as bankruptcies, short sales, foreclosures, or deeds in lieu of foreclosure.
- Other derogatory events include notices of default and certain loan modifications.
- Lenders refer to these events as “housing events” or “credit events”.
- However, despite the borrower’s negative credit history, some lenders are still willing to extend loans under certain conditions.
Success Stories (Loans Despite Bad Credit History)
Sample loan programs for borrowers with recent credit events
The key factor the lender considers in whether to offer a loan is how much time has passed since the housing event or credit event in question. This passage of time is also known as “seasoning”. Generally speaking, the more recent the event, the less favorable the terms.
- As just one example, some lenders require seven years of seasoning since the last event. If less than seven years has passed, the borrower is ineligible.
- However, the amount of seasoning can vary greatly from lender to lender, with some lenders requiring one to five years, while some lenders are even willing to consider borrowers who are just one day out of the event.
All items are subject to change. Call David A. Krebs at 321-239-2781, click here to submit a message, or click here to book a call.

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