Home mortgage lenders can get you into a home even if you have bad credit. When dealing with a subprime lender, you can expect easier application requirements. You can also choose just the right mortgage terms, from a fix rate to an interest only mortgage. Most importantly, you can expect reasonable rates from lenders who will provide you true customer service.

1. Easier Home Mortgage Application Requirements

You can look forward to easier application requirements from subprime lenders. Financing companies that deal primarily with people who have poor credit wont automatically reject your application if you have a bankruptcy or foreclosure in your credit report.

Instead they will look at your entire financial record, including monthly income and assets. Then they will offer you a financing package. The better your credit and assets, the better your rates. Subprime mortgage rates range from 2% to 12% above market rates.

2. Flexible Mortgage Terms with No PMI

You also will have many more options when it comes to your terms, and subprime lenders dont require private mortgage insurance (PMI). So putting less than 20% down wont cost you hundreds a year in insurance premiums. You can even find zero down or zero cost loans.

It is important to remember that terms also affect your rates and payments. For the lowest payments, look at an adjustable rate mortgage with caps. You can also find ARMs that refinance after two years to lock in rates.

Points can save you money by lowering rates. But, you may find that a better strategy is to rebuild your credit and then refinance for lower rates. If this is your plan, then make sure you dont have any penalty fee for early payment.

3. Reasonable Home Interest Rates from Legitimate Mortgage Lenders

Bad credit doesnt mean automatic high rates. Legitimate lenders will offer you reasonable rates. The key is to look for them. Online sites can help you find great rates when you request quotes. Search through broker and individual sites to find those hidden deals.

Online lenders remain competitive through their rates and customer service. So, many times you can find offers that waive fees or require no points. Be sure that you research all your options before signing any contract.