It used to be pretty easy to get bad credit home loan financing. Countrywide specialized in these mortgages. But, we all know what happened to Countrywide – it went belly up and Bank of America was forced to buy up its bad assets. Therefore, bad credit home loan financing is less available today.

That doesn’t mean you can’t get bad credit home loan financing. It just means you’ll have to dig a little deeper to find it.

The first thing you should do is determine whether you really are a subprime borrower. Many people are pleasantly surprised to find that they have better credit scores than they had thought. If your credit score is better than 620, you probably don’t need bad credit home loan financing – you can get into a traditional mortgage.

Secondly, if you are on the border – if you have credit between 580 and 620 – try to raise your score. Get your credit report and challenge any inaccuracies. If you have any bad debts, make good on them in exchange for the lender marking them “paid in full” on your return.

But, if these tricks don’t get you into normal mortgage territory and you still need bad credit home loan financing, go talk to a lender at your bank to get an idea of what you will pre-qualify for. If you have credit below the 580 mark, you may be unpleasantly surprised at how much the premium you will pay on the loan is.

If that’s the case, then get on the internet and search for “bad credit home loan financing.” There are many lenders who specialize in such loans. There are also services where you enter your basic financial information once and get several loan quotes. These aren’t firm offers because there are still variables such as your proving your financial information and the property you choose itself, but it should give you a good idea about whether you actually can qualify for a home.

You do have some things going for you right now, even if you have bad credit. There are millions of homes sitting vacant. Banks want to get these properties off of their books and are willing to go to extraordinary lengths – including bad credit home loan financing schemes – to sell these homes. Also, interest rates are currently low. So, even if you are paying a premium, it may be lower than it was a couple of years ago.

In addition, there is a nine month supply of new homes. Builders want to get rid of these properties. They may be able to offer you attractive rates so that entire tracts aren’t sitting empty.

The good news is that if you get into a high interest rate bad credit home loan financing situation, you can get into a lower rate in as little as 24 months providing that you make all of your payments on time. In fact, one of the best ways to clean up your credit and raise your credit score is to buy a house and keep current on the payments.

If you are looking to buy a home, dig deep to come up with the best bad credit home loan financing.