For those who dream of owning a home, but have less than perfect credit, there are still options. There are several creditors who offer home loans for bad credit. While these loans do not typically have prime interest rates, the loans make it possible for everybody to fulfill the American dream of owning a home. Once a person’s credit has been built up, refinancing is always an option. Here are Mark’s tips for finding a home loan with a fair to good credit score that doesn’t qualify for prime rates.

· It is crucial every person checks their credit score before applying for any loan. Taking the time to dispute discrepancies on a report is an excellent way to add a few points to a credit score, which will ultimately increase the chance of being approved for a loan.

· Check around and research any bank or agency that offers home loans for bad credit. There are too many shady companies willing to charge a small fortune in fees to those who feel they cannot get a loan any other way. Check with the Better Business Bureau, the internet and friends and family members who have dealt with a particular bank.

· Check with local and state agencies that specialize in home loans for those who would not otherwise qualify for a standard loan. FHA loans are an option as well as loans for homes that are in rural areas.

· Make a concerted effort to come up with a substantial down payment. Many lenders will underwrite home loans for bad credit with a 20 percent down payment. Borrowed down payments are acceptable. However, the money needs to sit in the bank for at least three months.

· Check with a credit union. Local credit unions are more apt to lend to their account holders who are looking to buy a home in the area.

While shopping around for a loan, it is imperative a person makes a concerted effort to increase an existing score. Every point helps. Learn more about what needs to be done in order to do this. If it is proving difficult to obtain a loan in most markets, it wouldn’t hurt to ask a trusted friend or relative to cosign the loan.

Loans for bad credit are out there and many banks provide them. It just takes a little dedication and these five tips to find the best loan possible.

Mark Clayborne is the best-selling author of the book Hidden Credit Repair Secrets available on Amazon.com, and the creator of Self-Credit Repair Dispute Software. Just for reading the article, Mark would like to give you a free credit score course and a demo version of his software.