Getting a mortgage loan with bad credit can be a tough road to navigate through, but you can obtain a loan with the right help. If you have stopped filling out home mortgage loan applications because you know you have bad credit with too many scores against you, but you're still looking because you have a dream, we can help!

Things happen in life: layoffs, illness in the family, unplanned emergencies that can have repercussions on one's credit report.

There are companies that approve loans for people with less-than-perfect ratings. Some people are even able to get mortgages even if they are in bankruptcy or foreclosures.

How Is Credit Risk Measured?
The information measured is gathered from retailers, public records, and sometimes credit applications and bank records. The score analyzes patterns over time, with more recent payment and debt habits holding greater weight. In the scoring system used by Fair, Isaac-the originators of scoring software-the main criteria and their approximate percentage of importance are:

Types of credit in use (10%) Lenders use these credit scores, which range from 400 to 900 points, along with information such as the stability of your income, your employment history, and the value of any collateral and liquid assets, to determine your credit risk.

Have you been turned down?

If your lender turns down your application because of poor credit, ask for precise reasons and for a copy of your Residential Mortgage Credit Report. If it contains errors, be sure the dates of facts in question are within the past seven years; anything older shouldn't be used to assess your credit risk. Advise your lender of errors immediately, and contact the relevant agency or agencies below to request a new investigation of questionable areas. And be sure that credit accounts you've closed are noted as "closed by consumer."

If you're turned down for a conventional loan because of credit problems, you can probably still qualify for a loan with a lender that works with people who have a B or C credit rating or a Sub Prime lender, but expect a substantially higher interest rate. But be extremely cautious with "special" loans offered to high-risk first-time buyers-they often demand impossibly high interest rates or promise future refinances that never happen.

The Bottom Line

Never give up on your dream of obtaining a home loan. Studies show that a higher percentage of borrowers with bad credit scores who were persistent with several loan applications were successful in obtaining their dream home. Apply Online!