It's credit called by many names, from sub-prime to damaged. It means that even though a buyer has less than perfect credit, he can still obtain a less than "A" grade loan. Many lenders have the ability to offer B,C, and even D grade loans to borrowers with glitches ranging from slow pays to bankruptcy. Some lenders have the knowledge and desire to take on less than perfect buyers and are able to rate, package the loan and sell it to investors. They realize that heavy credit coupled with life situations out of a borrower's control like illness, divorce and death have made perfect credit almost non-existent. Most lenders want borrowers to have reasonably stable employment, fully documented income, assets and liabilities. So even with blemished credit, if a borrower can show a certain degree of personal stability, a loan can be obtained. Lenders will still require verification of why slow payments occurred and what the borrower has done to prevent the situation from happenening again. Compariing loan costs for various programs through several prospective lenders will give the borrower the best comparison of the range of interest rates and points necessary to obtain this type of financing.