Even something as serious as a recentforeclosure/short-sale/bankruptcy can be okay with a portfolio loan. It’s a matter of working with the right lender.
Mortgage loans for bad credit are out there, and here’s what you can expect:
-Available on primary residence.
-Usually at least 10% down will be required. Gift funds are okay.
-Interest rates on portfolio loans may be higher than typical loans.
-Offered by many small banks and credit unions.
-Paying points may be required.
-No PMI (mortgage insurance)
Check this out for more:http://www.balanceprocess.com/mortgage-loans-for-bad-credit/