Consider an Interest Only Mortgage to Compensate For Higher Payment - Many home mortgage lenders offer loans to applicants with poor or bad credit history for interest only home loan mortgages. With an interest only home loan, borrower is only required to pay interest part of home loan mortgage. The principal amount is due years later, depending on which type of loan you get. This kind of loan can give you time to fix your credit and qualify for a better interest rate.

You can be approved for a home loan even with adverse credit problems like bankruptcy, foreclosure and other problems that cause your credit score to be low.

To see a list of our recommended mortgage lenders for people with poor or bad credit visit this page: Recommended Bad Credit Mortgage Lenders

Hybrid home loan mortgages -

Trying to fill void left with downside of fixed and adjustable/variable-rate home loans, hybrid home loan lets you fix interest rate over first part of home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during expensive time when you first buy home. The downside is that if floating rates are much higher than your fixed rate when switch happens, you could find you are paying a much higher repayment each month.

To see our list of recommended mortgage lenders with competitive rates for refinance, purchase loans, second mortgages, home equity loans and all other mortgage loans, visit this page Recommended Mortgage Lenders