Poor credit home loans are still available and will always be available. However, they will be more difficult to obtain now than during the hey days of easy credit. Most people have been shaken, and many left homeless, as the housing market tumbled over the last few years. Now that we are starting to see signs of stability in the real estate arena, it may be an opportune time to venture into homeownership. If you have bad credit but want to take advantage of the mortgage debacle to purchase a home, you will be relieved to learn that there are still ways to get home loans for people with bad credit.

There are several reasons why now is a good time to buy a home: relatively low interest rates, vast available inventory, and incredible price reductions from recent highs of a few years ago. All this can add up to a great deal on your home purchase. But home ownership is a serious responsibility compared to being a rental tenant. Given that you have poor credit, is taking on more debt at this time right for you? If you are determined to buy a home with bad credit, here are a few tips to get you closer to your goal.

If you have a low credit score, the chances of getting an affordable conventional mortgage are slim to none so why not consider obtaining an FHA-insured loan? FHA-backed mortgages are intended for people with less than ideal credit. Compared to subprime mortgages, FHA-insured loans offer lower interest rates, as much as 3% lower which equates to thousands of dollars.

Should you fail to qualify for an FHA loan, shop around for subprime or credit impaired loans. There are several online bad credit lender comparison sites for you to test the water. Since these websites specialize in bad credit mortgage loans, they know which lenders will be able to cater to your needs. Be aware that these loans typically carry high interest rates and contain prepayment penalties that may make refinancing undesirable. It will definitely be expensive to get bad credit home mortgage loans. Before endorsing a loan contract, make sure you thoroughly understand the terms.

Depending on how poor your credit rating is, it may be better to work on repairing your credit to increase your approval success before approaching lenders. There are very practical strategies you can implement immediately to improve credit rating. You can clean up your credit report, and thereby increase your credit score, with some solid money management discipline and sacrifice.