Here is a great article from Bankrate.com on getting a good subprime loan:
Haunted by 619? Get a subprime loan
Everyone wants to qualify for loans at the lowest interest rates and with the most favorable conditions, but for those with severely blemished credit reports, the odds of doing so are rather bleak.
Like the lost soul in the popular TV commercial, having a 619 credit score is not great, but it’s also not the end of the world. If you fall into that category with a credit score dipping precariously below the 620 mark, subprime lenders who offer loans with higher interest rates may be your best option for buying a home, refinancing or opening a line of credit. However, you will have to pay the price.
“There’s a place in the market now that allows people with either bruised, blemished or no credit to find a way to get some financing,” says Catherine Williams, vice president of financial literacy for Houston-based Money Management International.
While the subprime market may have evoked images of a seedy broker fielding rejects from major lending institutions in years past, the market today has become so profitable that such industry giants as Chase Manhattan, Bank One and Wells Fargo have opened subprime divisions. Along with the large banks, you can get a subprime loan from such entities as credit unions, mortgage brokers, mortgage companies and payday lenders. According to the Federal Reserve, the number of subprime mortgage loans issued grew seven-fold between the years 1994 and 2002.
The subprime lending industry has been under fire for targeting certain groups of minorities, including African Americans and Latinos, who both are more likely to have subprime loans than whites. Federal regulators recently said they would investigate a number of subprime lenders across the country to make sure their loans are not discriminatory.
Read complete article:
http://www.bankrate.com/brm/news/debt/debtcreditguide/subprime-loans1.asp
By Tamara E. Holmes • Bankrate.com