Getting a mortgage loan when you have poor credit history is getting easier and easier.  More and more companies are offering programs to help finance new homeowners with bad credit.  Here are some tips to help you get approved for a mortgage loan with bad credit.

1. Get a free copy of your credit report from all 3 major credit bureaus: You can get the free report here.  Look over your credit report.  Do you see any errors? Make sure everything included in your bankruptcy or foreclosure reports accurately on your credit report. Make sure accounts involved in a bankruptcy or foreclosure are not showing something other than a bankruptcy, like a charge off or a collection account. That kind of mistake could make your score much lower than it needs to be. If you have a bankruptcy or foreclosure, you want everything involved to say so, so it is all under 1 circumstance, instead of many. It has become very easy to dispute errors on your credit report nowadays.  It only takes a few minutes.   You can do it right on the website of Equifax, TransUnion or Experian.

2. Apply only to places that submit your application to many lenders. Your credit score will drop a little every time your credit report is pulled.  Apply with places that do not pull your credit initially.  They can usually provide you with pre-approvals based on your description of your credit history.

 Frequently asked questions with bad credit mortgages are:

1. Will I Need A Lot of Cash To Put Down? Not necessarily. If you can get your credit score above a 600, you should easily be able to get 100% financing, even if it has been less than two years since your bankruptcy or foreclosure. If your score is above a 580, you might still be able to qualify for 100% financing.

2. What kind of interest rate will I get? Depending on your credit score and whether you have any down payment or not, I have heard of situations with a credit score as low as 585 with no down payment and an interest rate as low as 7.25%. That was quoted in March of 2005.

3. Can I Get Cash Back From The Loan? On a purchase, not likely. On a refinance, depending on your amount of equity, that is possible.

Here are our recommended bad credit mortgage lenders: Mtg Lenders For People With Credit Problems:
-Updated For 2010-






When applying for bad credit mortgage loan, make sure you are current on your existing credit lines. You will want your current credit to be as good as possible.

Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker also.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.