How to get a home loan with bad credit depends on what path you want to take and how much you are willing to pay for bad credit mortage.

The truth is that having bad credit is problematic when you try to get any sort of loan. As much as I'd like to say there is some magic trick to get a home loan with poor credit, there is no "shortcut" for good credit. However, having said that, there are some ways how to get a house loan with bad credit – if you ware willing to pay more money.

The first thing you need to decide is what sort of loan are you after. Do you want to get a loan from a bank or are you willing to use an online mortage lender? Conventional lenders will have lower interest (usually) and are of course, very secure. The downside is that conventional lenders won't give out bad credit loans.

Some conventional lenders do have subprime (bad credit mortage loans) loans, but with the recent housing crash and subprime mortage crisis, it's a rare bank indeed that will give you a mortage with bad credit ratings. If you have a down payment on a home, it is possible to get a subprime mortage from a bank, or even a regular mortage.

Typically, you will need between a 3% to 5% down payment on a home to get a mortage from a bank with poor credit. If you want to get a bank mortage with bad credit and no down payment, tough luck – it won't happen anymore.

If you want to get a home loan with no credit or poor credit, then you next best bet is looking online for a bad credit mortage. Bad credit mortgages are actually a good option for those with bad credit who want to be a home owner – and don't mind paying extra for the privilege. Bad credit mortgages are just that – home financing for people with bad credit.

Also not that the same princples of finding a home with bad credit also apply when you want to know how to refinance a home with bad credit. Refinancing with bad credit is sort of like you are looking around for a mortage again.

The cost of a bad credit home loan is that you pay more interest than you would with a conventional loan. Bad credit loans for homes will typically run you about 2%-10% over conventional interest rate, depending on your credit history. The better your credit, the better your interest rate. If you put down a down payment, it's actually possible to get conventional mortage rates.

It's important to remember when looking for mortage loans for bad credit is to look online and see what sort of deals you can find. There are a lot of online poor credit mortage lenders to choose from and you can get competitive interest rates if you shop around a bit. This extra effort on your part can literally save you thousands of dollars over the course of your mortage. So make sure you look at 5 or 10 bad credit lender websites to find the best interest rates for home loans with bad credit.

Proper research is how to get a home loan with bad credit. So make sure you do some and visit as many mortage loan sites as possible for the chance of getting the best price on a house loan.

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