Keep in mind that when someone actually gets through the foreclosure - their credit score was already in the toilet from months of missed payments.
There are still loan programs out there, talk to a broker to find these things out. They will change on a daily basis, too!
One caveat about getting a subprime, or non traditional mortgage. Everything can be going along fine, and then the lender will decide not to do those type of loans anymore. That means that your financing will now be dead and you will have to apply for another loan. This could happen anytime before closing. That’s the biggest risk for the buyer right now (imho).
There is no way to quantify this. Depends on so many factors but previous poster is right. FC is not one event it is a series of events. Each one damages FICO more.
You really need to call a mortgage broker to get the low down for your situation. Programs are changing daily.
Subprime loans are still available from MANY sources contrary to popular belief. Requirements and rates are stiffened. The rate for the loan you quote would depend upon FICO and whether it can qualify for FHA and whether it is jumbo, etc.
research at places like bankrate.com for conventional loans. To get a real feel for the mortgage market, I read posts from mortgage broker forums. This is a great way to gain insight into various areas of REI…hang out on appraiser, mortgage brokr and realtor forums. You understand how they thnk and issues they are facing. Warning: Don’t go to the appraiser websites unless you can handle bad news. As a group they are TREMENDOUSLY negative about the future of RE prices. Makes you not want to own any RE at all. Seriously.
Cutoff FICO for prime vs SUBprime uused to be around 620. Now it is 660-680. But it is a combination of LTV, FICO, and documentation that determines the rate.