If you are a homebuyer with poor credit there are still mortgage options available to you. Depending on the extent of your credit problems it may be difficult for you to qualify for a traditional mortgage loan; however, there are many bad credit mortgage programs available. Here are several tips to help you qualify for your mortgage without losing your shirt in the process.

Consider a Government Backed Loan

The United States government has several programs that can help you qualify for a competitive mortgage loan, even with bad credit. The FHA and VA both offer guaranteed loan programs. You will still apply with a traditional mortgage lender; however if you qualify for the FHA program or are a veteran that qualifies for a VA loan, these programs will save you money.

If FHA or VA mortgages are not an option for you, consider a lender that specializes in bad credit mortgage loans. These bad credit mortgage lenders are often called ?sub-prime? mortgage lenders and cater to borrowers with bad credit. These lenders work around your credit problems, for a fee. Bad credit mortgages typically come with higher interest rates, lender fees, and often require upfront points as a condition of qualifying for the loan. Your goal for this mortgage is to build several years of favorable payment history, then refinance to a traditional mortgage loan with competitive rates and terms.

Improve Your Credit

Once you have your mortgage you need to concentrate on improving your credit score. Request credit reports and carefully review these records for errors; if you find errors you will need to fix them. Pay down the balances on your credit cards and make sure you pay every bill on time. There is no ?instant fix? to your credit problems; however, with time and responsible use of your credit, it is possible to clean up your credit and improve your financial situation. You can learn more by registering for a free mortgage guidebook.