There are an impossible number of loan programs available that address a wide range of special needs. I have two mortgage brokers who each have access to over 50 lenders and are knowledgeable of the various city, state and federal loan assistance programs. Only way to answer your question to explain your situation and let them figure it out. I'm more than happy to introduce you. One is located in Santa Clara and the other in Los Altos.
In the event that you don't qualify, they will provide you with the specific steps necessary to qualify. Again, it seems impossible to understand what does/does not help/hurt your credit score and what is required to qualify. This will ensure that you do qualify as soon as possible and you will know about how long that will take.
Lic. TX RE Agent
So you might also want to explore homes that have been on the market a long time or homes that need work. If you look up La Honda from Palo Alto there are some interesting opportunities up in the woods where the sellers understand that sometimes seller carry back financing is important.
The loans will go as high as 625k in our area (SF Bay Area)
As far a 'bad' credit, I would need to take a look at what specifcally you mean by bad.
WIth an FHA loan, 640 is considered a good credit score. Not so much with conventional.
So, it is all relative.
The credit report is a gauge of how you will be as a mortgage payment risk.
If your credit is bad due to late payments here and there it is not as negative as bad credit resulting from a car reposession or defaults on credit cards.
As always, you are welcome to discuss with me through email firstname.lastname@example.org
It really depends on how bad your credit is right now. If your credit score is at least 580 you can get in with only 3.5% down with an FHA loan.
There are also down payment assistance programs that you may be eligible for depending on your situation.
Feel free to give me a call or send an email.
Mortgage Consultant - 32 Years Experience
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093