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Do you have several late payments, judgments, or perhaps a bankruptcy? If so, your credit score is likely low and it's extremely difficult for you to get approved for a mortgage loan. Fortunately, plenty of home loan lenders offer mortgages for people with bad credit. Regardless of your past or current credit situation, there are lenders eager to take a chance and help you improve your FICO score.

Here are three rules for successfully getting a home loan with poor credit.

1. Expect a Higher Mortgage Rate:
Sub prime or bad credit loan applicants are very risky to mortgage lenders. Because these borrowers have developed a bad payment history, their credibility is ruined, and they have to prove themselves worthy of a loan. For this reason, individuals with poor credit ought to anticipate a much higher rate on their home loan. The rate is determined by credit score and the borrower's credit report file. Having a few minor "slip-ups" on your credit report doesn't make a huge difference. On the other hand, if you've never paid a creditor or time, or recently filed bankruptcy, expect a rate approximately 2 – 3 points above the average.

2. Maintain Five Strong Credit Accounts:
It can take several years to rebuild a damaged credit score. Even so, if you want to buy a house, attempt to open about five new credit accounts. Getting approval for new lines of credit may be challenging, and you may be asked to provide a security deposit for credit cards. However, if you make consistent payments for six months or more, this looks good on your credit report and the mortgage lender may consider your application for approval.

3. Build a Sizeable Savings Account:
Having liquid cash in a bank account is not a requirement for a mortgage loan approval. However, if you want to demonstrate your seriousness and show the lender that you're financially ready to handle a mortgage payment, attempt create a cash reserve. You could use the money as a down payment and negotiate better loan terms.