Do you want to have your own home, but you have a flawed credit report and conventional mortgage lenders or banks have rejected your loan application? You should not lose hope because you may still be qualified to a particular loan if you choose to purchase among the available Rancho Santa Fe homes for sale or any other houses put up for sale in California.

One of the many different types of mortgage loans offered in this state is the bad credit loan, also considered technically as a sub prime mortgage. It is intended for home buyers like you who have gone through issues with their credit and allow them to buy a home. Some of these credit issues include, but are not limited to, the following:

• Foreclosure within the preceding four years

• Credit scores under 620

• Late payments of 30, 60, and up to 90 days in the preceding two years

• Bankruptcy within the preceding three years

• Judgments, liens, or collection accounts

With these bad credit loans, mortgage lenders are at a higher stake because of the preceding credit report of borrowers; but due to that risk, these lenders have higher mortgage rates as a form of a higher compensation or reward.

A bad credit loan permits borrowers to acquire a mortgage when their applications have been declined by customary banks or mortgage lenders. The idea in this type of loan is to give these borrowers another opportunity to show their credit worth and then repay the mortgage in due course after they have set up a perfect credit report for no less than two years.

This type of loan has many different mortgage terms that are available to borrowers. The basic terms include, but are not limited to, the following:

• Amount of loan from $75,000 to as much as $2,000,000

• Different mortgage loan programs that include 80 / 15 / 5 and 80 / 20; fixed rate mortgage; 2/28, 3/27, 5/25 and 7/23; and adjustable rate mortgage

• Terms of mortgage loan repayment can be 15 or even 30 years

• LTV of mortgages of up to 100 percent funding

These bad credit loans can really give assistance to many buyers, particularly individuals who need a mortgage loan but are turned down by the majority of customary lenders. For this reason, if you really wish to purchase your own property in Rancho Santa Fe real estate and you have gone through some credit problems, you should take this opportunity and attest your credit worthiness.

It would be wise if you pass your loan application first before you shop around for available houses. If you have already chosen the one you would like to purchase, it's better to get a loan pre-approval before presenting an offer to buy the home. Through this, the probability that you'll get the house is higher. Discuss these matters with your real estate agent and inquire about the options so you won't have much trouble throughout the whole process. It is best if you are well prepared and expect everything that may possibly happen so that you will be ready to face it if there are problems that will arise.