Bad Credit Mortgage Loans are loans made by mortgage companies willing to take a higher level of risk by lending to those who have poor credit. The interest rates are generally much higher than loans made to those with stellar credit, and the lender may require additional concessions, such as mortgage insurance before agreeing to the loan.

Before you even apply, there are things you can and should do to improve your situation.

• Get a copy of your credit report from all three credit reporting agencies: Free Credit Report
• Check the report for inaccuracies.
• If you find any, or if there is very old information on the report that is hurting your credit score, either contact the original party and see if you can have the information corrected or removed, or work with a company or law firm that specializes in cleaning up credit reports.
• In the meantime, make sure you are not getting new negative entries by paying all your bills on time and not applying for new credit.

Once all of this is done, and you have not had any new negative entries for as long as possible, preferably at least 6 months, then and only then, apply for the mortgage loan.

By doing this you will have minimized the damage your bad credit will do by as much as possible, and you might just get better terms. It is more likely you will qualify for a loan without wrong information and recent negative entries than if you just apply without even checking what your credit report says.