These loans do not meet the credit requirements of fannie mae and Freddie Mac
They are known as B, C and D paper loans. Loan applicants typically have a bad credit history, have filed for bankruptcy, or have had a property in foreclosure.
Credit Challenged Loans are often issued as temporary loans until the applicant can restore credit and qualify for conforming “A” loans. Interest rates on B/C Loans are generally higher than for conforming “A” loans.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.